Technical Analysis

MarketWatch  Mar 20  Comment 
Technical Indicator: Market bears resurface ahead of Fed decision
Clusterstock  Mar 16  Comment 
Formerly red-hot bitcoin has seen a large drop from its record highs reached in December. The digital coin looks poised to trigger a bearish technical indicator known as a "death cross," which portends more selling to come. Goldman Sachs said...
MarketWatch  Mar 13  Comment 
Technically speaking, the major U.S. benchmarks continue to make progress even amid persistently volatile market price action, writes Michael Ashbaugh.
GenEng News  Mar 9  Comment 
Studies in green algae have generated some surprising new findings on the genetic changes that might have underpinned the evolution of male and female gametes. While prior studies in both animals and plants suggest that large-scale genetic...
OilVoice  Mar 7  Comment 
Last week we identified a prime chart pattern in natural gas that matched our technical analysis an ...
MarketWatch  Mar 6  Comment 
Technically speaking, the S&P 500’s recovery attempt is intact despite persistent market volatility, writes Michael Ashbaugh.
MarketWatch  Mar 6  Comment 
Technical indicators measuring short-term momentum of the stock market are finally relevant again and that’s good news for active managers, according to technical analysts
Benzinga  Mar 6  Comment 
The daily RSI shows bullish trend reversal.  Still too early to call a bottom as the key descending trendline hurdle is intact.  Further, USD/JPY is at the mercy of the US stocks.  The 300-point rally in the Dow lifted the...
OilVoice  Mar 6  Comment 
Technical analyst Clive Maund charts an oil company active in Oklahoma's STACK. You may recall ...
Financial Times  Mar 4  Comment 
Focus also turns to monetary policy divergence and junk bonds


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 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.


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.


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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