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.
Bollinger Bands
Bollinger Bands are similar to upper and lower envelopes that surround the stock price on a chart.
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.
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.
Interpreting Statistical Trends
An anemic appearance in advance-decline figures can adversely affect the opinions of all but the most optimistic of analysts.
Moving Averages
Moving averages are one of the simplest and most useful technical indicators available.
Relative Strength Indicator
The RSI is a momentum indicator, which measures a stock's price with relation to its past performance.
Stages Explained
One of the most well known techniques for chart analysis comes from the book "How to Profit in Bull and Bear Markets", by Stan Weinstein.
Stochastics
The stochastic oscillator compares the current stock price to its price range over a specifically identified period of time.
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.
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).