Technical Analysis, AVE-WHA
Is there predictive power in price and volume data? Technical analysts watch the charts, look for patterns, and use a blend of art and science to try to optimize the timing and price levels for buy and sell orders.
Technical Analysis Encyclopedia Articles By Title
Average true range (ATR): Using volatility for position sizing and risk control
Ask an experienced trader about their biggest challenge in achieving consistent profitability, and they’ll likely......
Beyond the benchmarks: How the advance/decline line offers deeper insights
Imagine for a minute that every trading day in the stock market is an election that offers investors one of two......
Bollinger Bands: A powerful technical tool for traders
Bollinger Bands are a popular technical analysis tool used by stock market traders to assess price volatility and......
Candlestick patterns: Charting your trading strategy
Japanese candlestick patterns are a cornerstone of technical analysis that offers traders an intuitive way to interpret......
Double top and double bottom patterns: Spotting trend exhaustion
When a stock that’s trending higher or lower reaches the same price level twice and fails to break through, it......
Dow theory and the foundations of technical analysis
What do the Dow Jones Industrial Average, the Wall Street Journal, and technical analysis have in common? All three......
Fibonacci trading strategies: Analysis, techniques, and debates
What does an 11th-century Italian mathematician have to do with trading? Turns out, quite a lot. Born about 1170,......
Flag and pennant patterns: When a trend hits the pause button
Even when a stock, cryptocurrency, commodity, or other security is clearly trending in one direction, it may occasionally......
Golden cross and death cross: Identifying and confirming chart trends
Suppose you have a long or short position in a stock, exchange-traded fund (ETF), cryptocurrency, or futures contract,......
Head and shoulders pattern: Indicating a shift in market sentiment
Imagine having the ability to spot a long-term market reversal as it’s unfolding. This would give you plenty of......
Heikin-ashi candles: Making market trends easier to spot
Heikin-ashi, roughly meaning “average bar” in Japanese, represents a modified version of traditional candlestick......
Ichimoku cloud: At-a-glance view of trend and momentum
Is it possible to view the market—past, present, and even its potential future—at a glance, with trend, momentum,......
Line, bar, and candlestick charts: 3 types technical analysts use
Line, bar, and candlesticks—these are the three most common technical analysis chart types. Think of them as vanilla,......
Market sentiment: Measuring fear, greed, and investor mood
If the actions of investors drive the price of a security, what drives investors to take those actions? The decision......
Navigating the markets with moving average convergence/divergence (MACD)
Let’s suppose you’re a trend-following stock trader. Your objective as a trend follower isn’t to seek companies......
Odd-lot trading: Small trades, big market insights?
Big, stodgy Wall Street institutions and big round numbers are so passé. Today’s markets are increasingly populated......
On-balance volume: Joseph Granville’s pioneering indicator in technical analysis
On-balance volume (OBV) is a technical analysis indicator and a powerful tool that can help you recognize both......
Price floors and ceilings: Areas of support and resistance in the markets
Stocks, ETFs, commodities, and really all market prices fluctuate, whether they’re on their way up or down. If......
Price gap analysis: What gapping stocks can tell traders
If you’ve ever traveled by subway in London, Paris, or New York, you’ve seen the phrase “Mind the gap.” It’s a......
Simple moving average vs. exponential moving average
When it comes to analyzing stock trends, price charts are an essential tool. A chart not only helps you contextualize......
Stock market trading time frames: Aligning strategy and personality
If you’re an active trader of stocks, commodities, forex—or any tradable asset, really—consistent profitability......
Technical analysis: Is there predictive power in chart data?
Technical analysis is a method of visually analyzing, interpreting, and forecasting price movements using historical......
Technical indicators: The tools of the trade
Technical analysis attempts to identify underlying patterns of buying and selling in a stock or security that may......
Trading with price action analysis
They say the map is not the territory. That might sound like a no-brainer. Yet, we’re all prone to occasionally......
Trend following: A time-tested strategy for riding market momentum
Wall Street wisdom reminds us, through its various maxims, to stay on the right side of the market: The trend is......
Unlocking the power of the Chaikin money flow indicator
Chaikin money flow (CMF), developed by renowned stock analyst Marc Chaikin, is a technical indicator used to assess......
Using moving averages to gauge market trends
How might you gauge the direction of an asset’s price trend? If you want to determine whether price is rising,......
Using the stochastic oscillator to anticipate market turning points
If only there were a market indicator that told us when to buy or sell a stock with precise timing and price accuracy.......
Volume-weighted average price (VWAP): A versatile technical indicator for pros and day traders
When it comes to stock market analysis, few indicators offer as much insight into intraday price dynamics and execution......
What is the relative strength index (RSI)?
When a stock is rallying, we assume there’s an influx of buyers willing to pay higher prices for the shares. Similarly,......