Technical Analysis

RECENT NEWS
Forbes  Sep 14  Comment 
In trading on Wednesday, shares of Turquoise Hill Resources Ltd. (NYSE: TRQ) entered into oversold territory, changing hands as low as $2.93 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical...
Forbes  Sep 14  Comment 
In trading on Wednesday, shares of QEP Resources Inc (NYSE: QEP) entered into oversold territory, changing hands as low as $16.87 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis...
MarketWatch  Sep 13  Comment 
Broadly speaking, the September downdraft has inflicted damage against a still distinctly technical U.S. market backdrop.
The Economic Times  Sep 12  Comment 
As you can see from the statements — which goes chronologically, but leads with this year’s voters — there’s a significant divergence of views.
Forbes  Sep 9  Comment 
With the emergence of affordable subscription fees and the growing divergence of free and paid content on music streaming platforms such as Spotify, Apple Music, Sirius XM and Pandora, it seems clear that the music streaming market is moving...
Forbes  Sep 9  Comment 
In trading on Friday, shares of Aqua America Inc (NYSE: WTR) entered into oversold territory, changing hands as low as $30.22 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis...
The Economic Times  Sep 8  Comment 
A technical analysis revolves around the study of historical prices and volume trends to map the direction of future stock price movement.
MarketWatch  Sep 7  Comment 
Altaira Capital Partners director of technical analysis Ralph Acampora went on CNBC to explain how stocks are setting up for a dramatic move higher, thanks to the current leadership in technology and financials.
MarketWatch  Sep 6  Comment 
Technically speaking, the U.S. benchmarks have absorbed a modest volatility uptick to start September, punctuated by a bullish response to last week’s monthly U.S. jobs report. Against this backdrop, the Nasdaq Composite has nailed major...
Financial Times  Sep 5  Comment 
Differing monetary trajectory likely to move Aussie Loonie cross




 
TOP CONTRIBUTORS


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.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki