Technical
Understanding MACD in Technical Analysis
Moving Average Convergence/Divergence or “MACD” is one of the primary indicators used in technical analysis. The MACD, created in the late 1970s, can help investors to uncover changes in stock price momentum, strength and direction by illustrating the difference between slow and fast exponential moving averages (EMA). This difference is plotted on a [...]
Free Guide to Technical Analysis for Stock Trading
The Stock Research Pro Guide to Technical Analysis for Stock Trading is the latest of our free white papers to help investors through the stock research and investment process. The technical analysis paper follows the Guide to Fundamental Analysis to provide a contrast between the two stock trading styles and should help investors understand [...]
Fibonacci Numbers and Technical Analysis
While the relationship between Fibonacci numbers and technical analysis does get a considerable amount of attention, the concept can be confusing at first. As it pertains to stock pricing, the idea behind Fibonacci analysis is that the price changes in stocks (or other market-traded securities) exhibit connections to Fibonacci numbers. For technical analysts, [...]
How Stock Trading Software Programs Work
A stock trading software program can help investors take the guesswork and emotion out of their stock trading strategy and more easily find those specific stocks that meet their defined stock investment criteria. Automated analysis and the use of software trading programs are intended to provide investors with the edge they need in making [...]
Technical Analysis and the Stock Market
Technical analysis for stock market investors involves the use of stock price patterns and trading volume to forecast future price values and patterns. Unlike fundamental analysis, technical analysts are not concerned with financial statements, management teams, or industry forecasts. Instead, technical analysis is focused on investor behavior and the clues that past price [...]
Short-Term Stock Pick Strategies
Short-term stock picks are often viewed as a more risky investment than buying and holding stocks for the long-term. In fact, over the long-term, the average well-diversified portfolio should see about ten percent returns. That said, short-term stock investment opportunities do present themselves to savvy investors who know what to look for and [...]
Stock Market Charting Basics
A stock market chart or “stock chart” provides a visual presentation regarding the price trends of a particular stock or group of stocks. Reading and interpreting stock charts falls under the technical analysis approach to stock investing and is used to predict future stock prices based on historical prices and trading volumes. While [...]
Descending Price Channels within Long-term Price Uptrends
A descending channel or “descending channel pattern” represents a price downtrend that is illustrated between two downward-sloping trend lines. While descending channel patterns are bearish, they often form within longer-term upward trends. Many traders look for short-term descending channels within uptrends as good entry points in anticipation of price breaks to the upside. [...]
Using Fibonacci Clusters to Identify Support and Resistance Levels
Fibonacci clusters are tools used by technical analysts to identify support and resistance levels by combining multiple Fibonacci retracements. A retracement refers to a reversal in a stock price’s movement due to the tendencies of prices to correct (or “retrace”). In Fibonacci analysis, Fibonacci numbers, and the ratios they offer, are used to [...]
Analyze the Advance/Decline Index to Determine Market Direction
The advance/decline index is a tool used by technical analysts to measure the difference between the number of securities whose prices are advancing against those in decline. The index is seen as one of the best gauges of market direction as a whole. Traders generally view a rising value in the advance/decline index [...]
