|
Technical Analysis Categories
- Types of Charts
*
Bar Charts
*
Line Charts
*
Candlestick Charts
- Chart Reading
*
Trendlines
*
Resistance Levels
*
Support Levels
- Moving Average
* Simple Moving
Average
* Weighted Moving
Average
* Exponential
Moving Average
* Triangular Moving Average
- Momentum Indicators &
Oscillators
-
Rate of Change
-
Relative Strength Index
- Moving Averages
Convergence /
Divergences
-
Price Oscillator
-
Stochastic
-
Money Flow Index
-
Williams %R
-
Volume + Moving Average
- Stock Chart Overlays:
- Bollinger Bands
-
Parabolic SAR
- Stock Chart Patterns:
*
Head and Shoulders
* V
Formations
* Double
Tops and Bottoms
* Triple
Tops and Bottoms
* Saucers
- Rounded Tops and
Bottoms
* Ascending,
Descending and
Symmetrical Triangles
* Channels
- Rectangles
* Rising
and Falling Wedges
* Bullish
and Bearish Flags
* Pennants
* Diamonds
* Cup and
Handle
* Pan and
Handle
* Spikes
* One-Day
Reversals
* Island
Reversal
- Dow Theory
- Elliot Wave Theory
- Spinella Heart Rate Theory
- Fibonacci
|
|
Technical Analysis Overview
My goal in writing this section is to help investors understand the
language of technical analysis and to assist them in implementing these
techniques in their everyday investment decisions. To a certain degree, most
experienced investors have already been applying many of the concepts of
technical investing. Now, with the advent of the Internet and with the free
models and charts on websites, technical analysis has become standardized
and integrated in the mainstream of investing. The mathematical statistics
and charts that were once only available to professional traders, are now
free and easily accessible on the Internet. The difficulty is in
understanding the language. The concepts, when explained, are relatively
basic. While the mathematics may seem advanced, the computer now performs
the calculations. It’s imperative that one understands the calculations
behind the charts, before relying on the indicators. Investors need to know
the formulas, but focus on the concepts.
Yahoo and StockCharts.com are introducing a new
generation of potential stock investors to technical analysis, just as Value
Line and Standard and Poor’s exposed the prior generations to fundamental
analysis.
As I mentioned in the stock strategy section of this website, technical
investing is a market and stock timing discipline. The participants analyze
charts and graphs as their tools in making investment decisions. Technical
investors fundamentally believe in the efficient market theory: that all
information on the markets and on individual stocks is known and is priced
into the securities, and that securities are fairly valued at all times. What
moves the markets and individual stocks are the emotions, reactions and
psychology of individuals, regarding economic news and events. Technical
investors believe that reactions fall into repetitive and predictable
patterns, which can be measured by using charts and graphs. By identifying these patterns early and by determining
where on the chart your investment lies, there is a probability of
predicting future price movements, that can aid in your stock buying or
selling decisions.
There are basically two types of technical analysts: those who rely on
mathematical indicators in choosing and timing their transactions, and those
who evaluate and interpret chart patterns in their trading decisions.
Attached is an article from
The Street .Com that may be of interest.
|
