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. Then [...]
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 your [...]
Energy fields? I am pretty sure most of you have never heard about energy fields being used with technical analysis, but it might be something you may take notice of more often now.
With the help of MarketClub, we were able to get this video analysis of gold together. Who knew that we would actually use [...]
The following is a list of 16 free quality articles that teach you how to properly use support and resistance to trade stocks.
Support and Resistance (StockCharts)
Support and Resistance Basics (Investopedia)
Support and Resistance 2 (Wikiepedia)
Technical Analysis Basics: Support and Resistance (Million Dollar Journey)
Support and Resistance Part 1 (Learning Markets)
Support and Resistance 3 (Incredible Charts)
The Simple Keys [...]
The Relative Strength Index, also known as RSI, is a technical indicator that simply measures the magnitude of a stock’s recent gains to its recent losses. It is useful for determining momentum of a particular stock.
There is mathematical equation, but most people will utilize RSI within the tools of a chart. The only customized option [...]
When it comes to reading chart and other technical analysis patterns, volume probably plays one of the biggest roles in how strong that pattern will hold. Very simply, the volume tells you how strong a certain stock movement is. Obviously, stronger (or more) volume indicates a more significant stock movement.
We can see this clearly in [...]
An example of a head and shoulder stock chart pattern in action and after being played out.