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"Want" Technical Analysis.com

You "Want" Technical Analysis to help you identify major market turning points by using technical analysis tools such as Moving Average, Technical indicators, Volume study, charts pattern and lot more...

Technical analysis deals in probabilities, it is an art and also a science. Technical analysis used various scientifically derived indicators (leading or lagging indicators) to identify a trend reversal at a early stage and ride on the trend until the weight of the evidence shows that the trend has reversed. Technical analysis base on the assumption that the emotions of market participants does not change, investors will react in a similar way they did in the past which result in the prices movement are likely to be the same as well. 1 Technical Analysis.com provide everything you needs for stock investment...

Technical Analysis Overview

Technical analysis is an art of identifying stock market trend reversal as early as possible and follow the market trend until it is proven that the trend has reversed.

There are various Technical Analysis Definition, basically Technical Analysis is the study of Stock Market Behavior, Stock Market and Business Cycle primary through the use of stocks charts to forecasting future prices movement.

Moving Average

An Moving Average is constructed to smooth out the price chart so that the underlying trend will be more clearly visible.

There are various type of moving average such as Simple Moving Average, weighted moving average and Exponential Moving Average. Learn how to Read and Interpret Moving Average to helps you to determine stocks market trend and trend reversal using Multiple Simple Moving Average, Advancing Simple Moving Average, Convergence Simple Moving Average by selection appropriate Moving Average Time Span and Determine Valid Moving Average Crossover, other moving average extension methods such as Envelopes, Bollinger Bands and Interpreting Bollinger Bands.

Technical Indicators

Technical Analysis used numerous scientifically derived indicators to identify a trend reversal at a relatively early stage.

The problem is there are few hundreds technical indicators out there for you to choose in combination to form your trading system. Good news is technical indicators are categorized into leading indicators, lagging indicators, Trend Indicators, Volume Indicators, Momentum Indicators and Volatility Indicators. Choice only one indicator from each category to keep you away from multicollinearity problem. Multicollinearity is a common mistake in technical analysis refer to unknowingly uses the same type of technical indicators more than once. Flow of Funds Indicators, Market Structure Indicators, Sentiment Indicators.

The Dow Theory

Dow Theory is the combined effort of the late Charles H. Dow and William Peter Hamilton.

The Dow theory is the most oldest and foundation of identifying major trends in the stocks market. The Dow theory is to determine change in the primary price movement of stocks market. Dow Theory Part 1, Dow Theory Part 2, Dow Theory Part 3 provides you with full understanding of this oldest and most publicized stocks market theory.

The Elliott Wave Principle and Fibonacci Sequence

The Elliott wave principle was established by R. N. Elliott and was first published in a series of articles in Financial World in 1939.

Elliott wave principle concluded that a single cycle comprised eight waves, the upper part of the cycle consists of five waves. Waves 1, 3, and 5 are define as impulse waves. Corrective Waves are waves 2 and 4 because they correct waves 1 and 3. The connection between Elliott's observation of repeating cycles of nature and the Fibonacci summation series is that the Fibonacci numbers and proportions are found in many manifestations of nature.

Trend Identification Techniques