Technical Analysis

Candlestick patterns are key indicators on financial charts, offering insights into market sentiment and price movements. These patterns emerge from the open, high, low, and close prices of a security within a given period and are crucial for making informed trading decisions. The aim is to identify potential market reversals or trends, helping you make … Read more

Support and resistance are essential concepts in trading, marking price levels where buying or selling pressures dominate. These levels help traders: Key types include static levels (e.g., round numbers, previous highs/lows) and moving levels (e.g., moving averages, trendlines). Techniques such as Fibonacci retracements, volume analysis, and chart patterns (e.g., double tops) further enhance accuracy. When breached, support often turns into resistance … Read more

Trendline channel patterns are a staple in technical analysis, helping traders to identify potential trade opportunities by charting trends within defined boundaries. These channels provide insight into market trends, offering strategic entry and exit points for traders. In this guide, we’ll explore how to identify, trade, and optimize the trendline channel pattern to improve your … Read more

What Is Technical Analysis? Technical analysis is a method of evaluating statistical trends in trading activity, typically involving price movement and volume. It is used to identify trading and investment opportunities. Unlike fundamental analysis, which attempts to evaluate a security’s value based on financial information such as sales and earnings, technical analysis focuses on price and volume to … Read more

A trend reversal in technical analysis marks the end of an existing trend and a beginning of a brand-new trend. The aim of the trader should be to take the opportunity of the reversal that can happen in any timeframe.  Trend Reversal is effective only when the stock trader can spot the reversal fast and … Read more

Technical analysis provides a structured approach to studying financial market behavior, offering what can feel like a map of the market’s terrain. However, as any investor knows, the map is not the territory. Markets evolve, news breaks, and unforeseen events can muddy even the clearest patterns. While technical analysis is one of the most widely used … Read more

Traders use technical indicators to gain a hold on the movement in the supply and demand of securities and market psychology. The best indicators are used to see when to buy or sell an asset. Traders can choose from hundreds of technical indicators, from simple moving averages to complex oscillators. Each serves a specific purpose. … Read more

To identify chart patterns, traders can use visualization techniques or automated chart pattern recognition software. Visualization requires practice and experience, as patterns can be complex and subjective. Chart pattern analysis can be applied to various chart types and timeframes. What are chart patterns and why are they important? Chart patterns are an interpretation of a … Read more

What is MACD? MACD is an acronym for Moving Average Convergence Divergence. This technical indicator is a tool that’s used to identify moving averages that are indicating a new trend, whether it’s bullish or bearish. After all, a top priority in trading is being able to find a trend, because that is where the most money is made. With a MACD chart, … Read more

Born about 1170, possibly in Pisa, Leonardo Fibonacci is known in the investing world thanks to several technical analysis studies regularly used by traders to estimate price targets, measure pullbacks, and manage risk in general. Key Points These studies are based on the Fibonacci sequence, where each number is the sum of the two preceding numbers: 0, 1, 1, 2, … Read more