While there are not too many differences between analyzing an individual security or an entire market, there are some key factors to notice.
A simple way to analyze stocks is through a method called pair trading, or comparing related company/index stock charts.
The volatility index is exactly that… it tells you whether the markets have a high or low volatility. In reference to the markets, volatility stands for how much or how quick stocks move up and down.
Even though I am an active user of technical analysis, fundamentally you just can’t help but think there is no way some stock should make this move? In this latest example, we are going to look at a chart of AIG. In just a few months the stock basically dropped from 400 to below 10. [...]
Before reading this article, be sure to be familiar with what moving averages are and how to read them. Most of the time, a user will have more than one period of moving averages in their charts… usually 50 and 200. Obviously based on your time frame, depends on how high or low you set [...]