🔍 One of the major goals of market analysis is to understand how prices move and how trends/cycles emerge over time.
But explaining these dynamics is tricky—even for practitioners. As any trader will tell you: sometimes, explaining risk management to a newcomer is harder than placing the trades themselves! 😅
👉 Launch the Interactive App ▶
📉 The Reality Behind Price Action
Markets don’t move in straight lines. They trend, consolidate, and revert—these are the rhythms of price cycles.
Understanding these movements helps to:
- anticipate momentum shifts,
- design robust trading/hedging rules, and
- make more informed portfolio decisions.
I illustrated this by analyzing Tesla (TSLA) in 2024 with a different toolkit:
- Heikin-Ashi (smoothed candles)
- Ichimoku (Tenkan/Kijun + Kumo Cloud)
- Anchored VWAP (volume-weighted mean price)
- Stochastic %K/%D (momentum oscillator)
- OBV & Volume (M) (flow/participation)
📊 Visualization
Legend:
- Heikin-Ashi: Smoothed price candles
- Tenkan (9) / Kijun (26): Ichimoku baselines
- Kumo Cloud: Span A/B volatility cloud
- VWAP: Anchored volume-weighted average price
- %K/%D: Stochastic oscillator
- OBV / Volume (M): On-Balance Volume & traded volume
🧰 Methodology & Data
- Period: 2024-01-01 → 2024-12-31
- Data source: Yahoo Finance via
yfinance
- Indicators: Heikin-Ashi, Ichimoku, VWAP, Stoch %K/%D, OBV, Volume
- Tools used: Python (
pandas, plotly)
🧠 Why It Matters
Whether in cooking, medicine, or markets—precision matters.
- In cooking: a wrong dose can ruin the dish.
- In medicine: a milligram too much can have serious consequences.
- In trading: misreading a signal or reacting late can deepen drawdowns or miss opportunities.
📚 Suggested Readings
- Hosoda, G. — Ichimoku Kinko Hyo
- Murphy, J. (1999) — Technical Analysis of the Financial Markets
#TSLA, #Ichimoku, #HeikinAshi, #VWAP, #Stochastic, #OBV, #TechnicalAnalysis, #Plotly, #Python, #yfinance