Wyckoff analysis was born out of years of practical study of the stock price boom and bust cycles. Its founder, Richard D. Wyckoff was a profound observer of the markets.
A high wave candlestick is considered a price reversal but is not associated with a specific direction. As a standard rule if the body is black it is taken as bearish, while if it is white it is treated as bullish.
The advance block is a three bar pattern that is usually taken as a bearish reversal signal. The pattern appears as a block of three white, rising candlesticks, each with a shorter body than the last.
The average true range or ATR for short is a way of measuring volatility in price. One of the most useful aspects of it is that it captures both intraday volatility and between day volatility.
When you do any kind of trend trading, the ADX is one indicator that you will want understand well. The ADX is especially good at highlighting trends, where they begin and where they’re likely to end.
The cup and handle is a consolidation pattern. It signals a brief pause in the trend. This pattern is likely to appear when the market is in an indecisive phase as a rally pauses and consolidates.