Technical Analysis

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Capital Essence's Investment Blog- 錢途集團 » Page not found  4 hrs ago  Comment 
This is Capital Essence's CEM News - Market Outlook (the technical analysis of financial markets) for September 29, 2014. ...our “U.S. Market ETF Trading Map” rates the S&P as a Hold. As expected, the index rebounded nicely off after...
SeekingAlpha  Sep 28  Comment 
By Sy Harding: It's not a secret. Investor sentiment in the U.S. is at very high levels of bullishness and confidence. However, the ZEW Center for European Economic Research reported this week that its investor confidence index fell from 8.6 in...
SeekingAlpha  Sep 27  Comment 
By Brenda Jubin: Harry Boxer, a veteran trader and technical analyst, has a subscription website with a live trading room that focuses on trending small- and mid-cap stocks. I don't know how good it is (on the home page it boasts outsize returns...
Forbes  Sep 26  Comment 
It’s not a secret. Investor sentiment in the U.S. is at very high levels of bullishness and confidence.
Forbes  Sep 26  Comment 
In trading on Friday, shares of the PowerShares Senior Loan Portfolio ETF (AMEX: BKLN) entered into oversold territory, changing hands as low as $24.195 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a...
The Economic Times  Sep 26  Comment 
Divergence, the yield gap between the two-year British government bonds and German bunds was near peaks last seen in September 2008.
Benzinga  Sep 25  Comment 
General Electric Company (NYSE: GE) shares are back under pressure as the market has gone from a "straight-up" trajectory to a more volatile consolidation phase. In general, the stock was lagging to begin with, so difficult market conditions...
SeekingAlpha  Sep 25  Comment 
By Robert W. Baird & Co.: By Willie Delwiche While the S&P 500 is getting credit for grinding higher in 2014, setting more than 30 new all-time highs already this year and building on the strong gains from 2013, the average stock has not...
Forex News  Sep 25  Comment 
US dollar index is higher today, thanks in large part to the policy divergence that the greenback has with its counterparts. US dollar is gaining ground against other majors as expectations for higher rates provide support. (...)Read the...
The Economic Times  Sep 25  Comment 
The single currency fell to its lowest level in nearly two years, reflecting a widening divergence between the monetary policies outlooks.




 
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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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