Technical Analysis

RECENT NEWS
Mondo Visione  2 hrs ago  Comment 
OANDA, a global provider of innovative forex trading services, is pleased to announce its partnership with Toronto-based MotiveWave Software, a developer of easy-to-use high-performance charting and trading software for the individual trader....
SeekingAlpha  Aug 30  Comment 
By Marc Chandler: Driven by the real and anticipated divergence in economic performance and trajectory of monetary policy, the long anticipated US dollar recovery has begun. As is evident in the positioning of the futures market, and confirmed by...
Capital Essence's Investment Blog- 錢途集團 » Page not found  Aug 29  Comment 
This is Capital Essence's CEM News - Market Outlook (the technical analysis of financial markets) for August 29, 2014. ...our “U.S. Market ETF Trading Map” rates the S&P as a Buy. The index moved down to test support at the lower edge...
Red Orbit  Aug 29  Comment 
Judith Burkart, University of Zurich Apes hardly ever act selflessly without being solicited by others; humans often do. What has caused this curious divergence, which is arguably the secret to our species’ unparalleled success? A team headed...
MarketWatch  Aug 28  Comment 
As many as 28 audits conducted by Ernst & Young are found to be deficient.
MarketWatch  Aug 26  Comment 
The S&P 500 has confirmed its primary uptrend with this week’s breakout, and its upside technical target opens the path to potentially meaningful incremental gains.
SeekingAlpha  Aug 23  Comment 
By Ketan Chokshi: Sometimes, I end up buying equities on more pure technical analysis to justify a strategy, and then after learning more about the company, I find that the fundamentals can show a whole new world. A few months ago, this happened...
newratings.com  Aug 22  Comment 
BRUSSELS (dpa-AFX) - The U.S. dollar strengthened against the other major currencies in the Asian session on Monday as speeches by central bankers at the Jackson Hole economic summit over the weekend suggested policy divergence and as geopolitical...




 
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