In short: A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past. A lot of TA traders believe in returning chart patterns. Chart patterns are the basis of technical analysis and require…
In short: Support and resistance trendlines are horizontally drawn lines to indicate where the price might end or gain strength. In stock market technical analysis, support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will tend to stop and reverse. These levels are denoted by…
In short: A Candelstick is a chart symbol of a specific period where the opening and closing price is given as the body and the price difference during that period is given as a line above and below the body. What is a Japanese Candlestick? Japanese Candlesticks are a technical…
In short: A Bar chart consist of symbols (Bars) where the opening and closing price is given as a line to the left and right of the bar. The color green or red shows the movement up or down. What is a bar chart? Bar charts are one of the…
In short: Technical Analysis is trying to predict the direction of prices through the study of market data via graphics. Primarly price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy…
In short: A line chart connects data points using a line, usually from the closing price of each time period. The line chart is the most basic chart type and it uses only one data point to form the chart. When it comes to technical analysis, a line chart is…
What is Parabolic SAR? In short: The SAR or stop-reverse-system determines the direction of the stockprice ahead of time. The Parabolic SAR is a technical indicator developed by J. Welles Wilder to determine the direction that an asset is moving. The indicator is also referred to as a stop and…
In short: Trendlines are used in TA to quickly point out the general direction of a stockprice by connecting the highs and the lows. Unlike horizontal support and resistance, trendlines are diagonal or slanted areas of value. Trendlines do behave like support and resistance in that price action can be confined…
We focus on Technical analysis only. Want to know why?
There are 3 primary things that influence a stock price:
The sector accounts for 50% of the move.
The market, 30%.
So company fundamentals is only responsible for 20%. I will explain more in this blogpost…
