Technical Analysis

Articles about technical analysis

Technical Analysis: The Moving Average


What is a moving average?

The moving average is another component associated with Technical Analysis. It is a common tool known by most investors and traders. In simple terms it is the average of the closing prices for the last 'n' days. The 'n' equals the number of periods. Therefore if you have a 30 day moving average, it represents the average of the of all closing prices in the last 30 days, which are then rolled forward one day a time.

Technical Analysis: Support and Resistance


What is support and resistance?

Once you understand what trends are and learn how to interpret them, the next concept will be resistance and support. These levels show the interplay of supply and demand in the stock market, dictated by traders when they are buying or selling.

Resistance

Technical Analysis: Trends


How to interpret trends

Technical analysis may intimidating. Most often newbies get turned off by this method because it takes a lot of work and patience. Imagine having to go over multicoloured charts for days on end, trying to determine where you should make your entry and exit in future trades. However, if your the type of person who prefers to have a visual interpretation of figures then technical analysis works for you. Interpreting charts may take time, but they plot price movements that are important for trading.

Analysing Trends

Basics of Technical Analysis


Types of charts in technical analysis

You won't be able to predict market changes, but there are ways to gain insight on its movements. Traders can use indicators that can help them in future trades. If you prefer to keep an eye on price movements, you will be using technical analysis. In simple terms, its the use of charts to interpret price movements of a particular stock or the market as a whole. This analysis believes that buying, selling, information and psychology of traders play a factor in the movement of a stock price.

Technical Analysis – Smoke and Mirrors?


The pros and cons of Technical Analysis

There are various methods in navigating the stock market. Even though it can be very unpredictable there are tools that you can use to help you gain insight on a particular stock that grabs your interest. One of the main methods in evaluating stock is technical analysis. This is used by traders to analyse the supply and demand of stocks in the market to determine their trend. The trend provides the traders signals on how the stock price will behave in the future. This can be very convenient in a highly uncertain market that enables traders to be one step ahead of the game.

Picking Market Direction Using Futures


Futures markets have always been used by many investors to have an idea on how the Australian share market will perform daily

Futures markets have always been used by many investors to have an idea on how the Australian share market will perform daily. Knowing whether the market will open with high or low value everyday helps the investor to decide on what to do with his stocks. In Europe and USA market, offshore futures review is one of the several ways to predict the direction of the market. This method is used to monitor how stock indices such as S&P 500 and FTSE traded the night before and this will help the investors determine the opening value of the particular stocks indices.

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