When it comes to day trading stocks, it is important that the trader is capable of carrying out detailed technical analysis of stock charts. Technical analysis greatly helps traders to make crucial decisions of buying, holding, or selling stocks. In this article, we’ll go over what technical analysis is, why it is important for traders, […]
It’s time to talk trendlines and I’m here today to help you remove the guesswork of drawing all different types of trendlines that help you pinpoint precision entries. Few stock market sayings have more staying power than “the trend is your friend” and for good reason. When the trend is moving in the same direction […]
Learning technical analysis of stock trends is a great way to develop your day trading skills especially when it comes time to enter or exit a trade. Although advanced software and nerves of steel are necessary ingredients for successful day and swing trading, one more component is needed: technical analysis. This third variable is how […]
If you are new to investing and looking to become an active trader in the stock market, then you need to know how to read stock charts. Although most stock charts are pretty basic, understanding how to read them can be quite intimidating for some traders. What is a Stock Chart A stock chart is […]
What is the volume rate of change? The volume rate of change, or VROC, is a technical indicator used to measure the rate of change in the trade volume of a security. Volume is an important component of virtually every trading strategy based on technical analysis, and is a key indicator for many strategies. Therefore, […]
The whole point of investing is to find an investment trading at a price that is either too high or too low from where it should be. One who can capitalize on this can start to make a lot of money for themselves. The trouble is trying to determine when a price is out of […]
Table of contents Why Traders Need Technical Analysis Technical Analysis: Bottom Up vs. Top Down Approach Key Technical Analysis Concepts Support and Resistance Bottom Line Technical analysis is a loaded term. The phrase means different things to different people. If you ask a green pea newbie, they’ll tell you that with the right knowledge […]
Technical analysis is the most commonly used approach utilized by day traders who are speculating on a day to day basis to profitably navigate the markets. While there are a myriad of ways to approach technical analysis and even more patterns to recognize, just a few key points will be of an immense help to […]
What Are Bollinger Bands? Bollinger Bands are a technical indicator developed by John Bollinger in the 1980s that plot standard deviations around a moving average. Here’s an example chart: Bollinger Bands widen as price volatility increases and tighten as volatility declines. Wider bands imply a higher standard deviation, meaning that an average price is […]
Of all the patterns created by price action, the flag and pennant pattern are some of the easiest to recognize as well as trade. They provide excellent entry and exit points with defined risk and reward scenarios. Below we’ll compare their differences in both appearance and trading tactics. Flag Pattern A popular trading pattern for […]
