Technical Analysis
An Introduction
Technical analysis is a method of stock market research using indicators, charts, and computer programs to track price trends of stocks, bonds, commodities, and market indexes.
A Time To Buy?
Are you in the market for a new car?
Another Look at Bollinger Bands
Moving bands that channel price action are popular technical tools. Bollinger bands are very common.
Bollinger Bands
Bollinger Bands are similar to upper and lower envelopes that surround the stock price on a chart.
Bottoming Formations, A Time To Buy?
Many investors on Wall Street are searching desperately for some kind of bottom to begin to appear in the broad markets.
Candlestick Formations
Candlestick charting is a market study tool dating back hundreds of years.
Charting Basics: Head-n-Shoulders
The knowledge of basic chart formations can significantly increase the probability of a successful position.
Contrary Opinion Indicators
The most common methods of technical analysis use quantitative measures that characterize price movement to determine the future outlook for a particular instrument.
Cup & Handle Patterns
One of the most reliable of all chart pattern formations in financial trading is the venerable "Cup & Handle". This classic signal is clearly seen as the side-view profile of a teacup with handle off to it's right.
Diamond Formations
Classic Diamond formations are unusual but not rare.
The Dow Theory
When there is interest rate uncertainty, many of the prominent technicians and historians will hurry forward, offering their expert opinions on the outlook for the U.S. economy.
Flags, Pennants and Wedges
Certain patterns and formations identified within price charts can indicate future movement with accuracy.
Four Stages of Stock Evolution
A well-known method of market-trend analysis for stocks was popularized by Stan Weinstein in his best-selling book, "How To Profit in Bull and Bear Markets".
Gaps
Gaps in price moves from closing prices of one session to the opening next are fairly common occurrences and very insightful technical studies.
Interpreting Statistical Trends
An anemic appearance in advance-decline figures can adversely affect the opinions of all but the most optimistic of analysts.
Momentum & Rate of Change
Momentum and Rate-Of-Change oscillators are technical tools that behave essentially the same.
Moving Averages
Moving averages are one of the simplest and most useful technical indicators available.
Moving Averages - 50 and 200 MA
Moving averages may well be the most important technical tool a trader can use.
Moving Average Convergence/Divergence (MACD)
MACD is a popular technical indicator used to predict near-term changes in the underlying market.
One-Day Reversals
One-day reversal patterns are a powerful & reliable technical indicator.
Price Coils
Price coils are a powerful chart formation signaling traders to impending price breakouts.
On-Balance Volume
Trading volume is a valuable measure to forecast underlying price strength in a market. Rising volume during rallies or corrections can indicate whether strength lies behind the move.
Price and Volume Relationship
Price action and volume interact to predict the likelihood of a current price move's duration.
Regression Channels
Traders use Regression Channel studies to select possible trade entries near support or exits at resistance.
The Relative Strength Indicator (RSI)
The RSI indicator has become an increasingly popular technical tool.
Retracement Numbers & Tools
The technical study of Elliott Wave theory and the Fibanocci sequence is vast, intensive and highly subjective.
Short-Term Moving Averages
Long term moving averages are popular tools for judging current market conditions for stocks and their underlying sector.
Stochastics
The stochastic oscillator compares the current stock price to its price range over a specifically identified period of time.
More on Stochastics
One of the most popular technical indicators are stochastic oscillator signals.
Support and Resistance
Simply stated, support and resistance can be defined as the price levels that the bulls and bears have agreed upon to either "catch" a stock's downward movement or the level at which the stock's upward movement will be held back.
Another Look at Support and Resistance
Areas of support and resistance form through the normal price action of buying & selling.
Trend Lines
Chartists construct trend lines to identify future price action.
Trend Line Analysis
The majority of technicians use historical charts to reflect the daily price and volume action in a specific instrument.
Trin and Tick
The 'Tick' is a computerized calculation of the net difference on the NYSE between all last sales on upticks (or 'zero plus' ticks) versus all last sales on downticks (or 'zero minus' ticks).
Volatility Index
The Volatility Index or VIX is a technical tool calculated and produced by the Chicago Board of Options Exchange, or CBOE since 1993.
When Technical Indicators Don't Seem To Work
As the major averages and many of your favorite stocks approached new highs earlier this year, many traders were either making plans for that well deserved vacation or contemplating early retirement.