Technical Analysis

Technical analysis is the art and science of interpreting charts to make buy or sell decisions. In technical analysis, those buy or sell decisions are timed so as to maximise profit from trading. In fact, many option traders use technical analysis to determine their entry and exit points in the market.

Technical analysis can be further classified into:

  • Indicator based
  • Price patterns

Indicator based technical analysis

Indicators are mathematical algorithms that take all available information from price action, trading volume and other factors of an underlying security, processing the information, and then predicting the future direction of a traded security.

Price patterns

Price patterns are based on chart patterns that are being formed by a financial security. By studying these price patterns, the future direction of the security is predicted.

 

More Information about technical analysis

1. Consolidation chart patterns – flags
2. Consolidation chart patterns – pennants
3. Consolidation chart patterns – triangles
4. Consolidation chart patterns – Wedges
5. Double/Triple Bottom
6. Double tops and triple tops
7. Fibonnacci Retracements
8. Gaps
9. Head and shoulders
10. Reverse Head and shoulders
11. Introduction to basic chart patterns
12. Introduction to technical analysis
13. Moving Average Convergence Divergence (MACD)
14. Moving Averages
15. Parallel Trendlines
16. Relative Strength Index
17. Stochastics
18. Support and resistance
19. The basics of price patterns
20. Time frames
21. Trends
22. Volume action

 

Read More:
Basics of Price Patterns
Basics of Chart Patterns