A Guide to the Charts I provide during the week

I want to go over some of the common features you will see on the charts that I post. The first thing is Heikin-Ashi Candlesticks indicated in the chart below;

The intent of using Heikin (average) Ashi (pace) instead of traditional candle indicators is to smooth some of the noise out of the technical analysis. I also like the clean look and how it reduces clutter on the graph.

The trade volume 'ghost' bars on the bottom track buy/sell volume and are of interest to note but not of much importance in this format. VWAP is a much better tool but I don't use it. The sine wave on the chart tracks the average pace of buy and sell cycles of the most current trend.

Fibonacci ratios are price relationships between peaks and troughs in price action. These levels and ratios track the psychology of price action which drive buy/sell decisions which is why we call these fib price levels 'decision zones'.