Technical Analysis

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Capital Essence's Investment Blog- 錢途集團 » Page not found  Oct 8  Comment 
This is Capital Essence's CEM News - Market Outlook (the technical analysis of financial markets) for October 8, 2014. ...our “U.S. Market ETF Trading Map” rates the S&P as a Sell. Tuesday’s downside follow-through served as a...
Benzinga  Oct 7  Comment 
Amazon.com, Inc. (NASDAQ: AMZN) shares have been hit recently and appear to have more room to fall. Can the stock –- and the market –- manage to recover in the short-term? What The Bulls See... • A price-to-sales ratio of...
MarketWatch  Oct 7  Comment 
The U.S. markets’ October price action remains distinctly technical, and bearish.
Forbes  Oct 6  Comment 
Stocks ended the week on a positive note as many of the daily technical studies are now rising. In Friday’s Week Ahead column, I pointed out the bullish divergence in the McClellan oscillator that formed last Thursday. This divergence could be...
Benzinga  Oct 6  Comment 
LinkedIn Corp (NYSE: LNKD) shares rallied hard on Friday, but the up-move did not change the potential bearish technical set-up that has been developing for the stock. It seems like the market, specifically the tech and social media space,...
SeekingAlpha  Oct 1  Comment 
By CapitalCube: No, this isn't a Halloween pun come much too early - the Death Cross is apparently all anyone can talk about lately when looking at the Russell 2000. The deliberately gloomy term is what the technical analysis folks use when a...
MarketWatch  Sep 30  Comment 
The widely-tracked U.S. benchmarks have reached an important test of major technical support.
Capital Essence's Investment Blog- 錢途集團 » Page not found  Sep 29  Comment 
This is Capital Essence's CEM News - Market Outlook (the technical analysis of financial markets) for September 30, 2014. ...our “U.S. Market ETF Trading Map” rates the S&P as a Hold. The index continues basing sideways using the...
Forbes  Sep 29  Comment 
A chock-full slate of economic data could keep the S&P 500 (SPX) and the CBOE Volatility Index (VIX) on the wild ride that has dominated trading over the last several sessions.




 
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Technical Analysis is the the study of the historical trend in an investment's price in order to predict future price movements.

Care must be taken when using technical analysis to be aware of fundamental events as they can invalidate prior technical analysis and cause large market shifts. In fact, a competing form of analysis is fundamental analysis.

The process of technical analysis can be applied to most markets including markets for commodities, securities, and currencies. Key concepts involved in technical analysis include: charts, support, resistance, trends and indicators.

Charts

Charts are graphical representations of market price and/or volume information in some time frame. For example, published charts generally provide hourly, daily or weekly data. One of the most common types of charts used for technical analysis is the Candlestick Chart. Formations, such as the commonly recognized Head and Shoulders pattern, can often be used to predict future price movement with a relatively high degree of accuracy.

Support Level

Support, within a particular time frame, is defined as a point at which a falling market price finds a bottom and does not fall any further. The price appears to bounce off of support levels and return to higher levels. There is no guarantee that a prior support level will continue to be a support level in the future.

Resistance Level

Resistance is similar to support. However, resistance is the point at which a rising market price finds a top and does not rise any further. Again, resistance may be applied to a time frame and of course a previous resistance level may fail to provide resistance in the future.

Trends

Market prices will often drift higher or lower in a series of waves. If a market is making higher highs and higher lows then it is generally considered to be trending up. If a market makes successively lower lows and lower highs then it is considered to be trending down.

It is often useful to draw a trend line along the levels of support and resistance. In particular, it is common for these trend lines to form a channel which can then be used to make trading decisions. Of course, a market may follow trend lines for a period of time but there is always the risk that it will stop doing so.

Indicators

Technical analysis often relies on the use of indicators. These indicators use mathematical formula to analyze price (and perhaps volume) action. Charts can be made using the indicator values and the information they provide can also be used to make trading decisions.

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