Category: Technical Analysis
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This is How Stocks React to Support and Resistance
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Are you a technical trader who’s learning about the proper application of support and resistance? Perhaps you aren’t quite convinced about the efficacy of these lines. In this article, I’m going to show you just how powerful support and resistance are, using examples from the stock market with tickers that…
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Technical Analysis: The Best Books on Price Action
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When it comes to technical analysis, there’s quite a lot of resources out there. Today, almost any term related to technical analysis is well-documented and defined on the internet or in books. This makes makes it easier to learn than ever before. At the same time, though, where are you…
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The Cup and Handle Chart Pattern: A Complete Guide
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The cup and handle is one of the most well-known technical analysis chart patterns out there. While not intuitive from its name, this pattern signals the likelihood of a bullish move in the near future. First defined by William J. O’Neil, a stockbroker and founder of the financial newspaper Investor’s…
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Trading Breakouts: Everything You Need to Know
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You may have heard of “breakouts” before in trading. It’s one of the more straightforward concepts once you see it. However, it’s something else to correctly identify the potential for a breakout, and react to a valid breakout in the moment. Traders who like to look for breakouts try to…
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The Head and Shoulders Pattern: Master This Now!
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As an experienced trader, when you hear “Head and Shoulders”, the following pattern should immediately come to mind. Are you able to see the shape that gives this pattern its name? The Head and Shoulders pattern is one of the most powerful and highly regarded chart patterns in technical analysis.…
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How to Use The Ichimoku Cloud Breakout Strategy
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The Ichimoku Cloud Breakout Strategy is one of the more common strategies that traders employ with this indicator. If you’re unfamiliar with the Ichimoku Cloud, be sure to read that post first. In addition, if you’re new to the concept of breakouts, I’ve made a complete guide to breakouts here.…
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Support and Resistance: The Ultimate Guide
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Support and Resistance are the most well-known and most popular tools in technical analysis. These terms refer to levels (or prices) where market participants have shown an extraordinary amount of interest. By understanding that buyers or sellers are much more interested in a certain price, it gives technical traders a…
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The ATR Indicator: A Complete Guide
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The Average True Range (ATR) is a technical analysis indicator developed by J. Welles Wilder in the 1970s. If his name rings a bell, you might’ve seen it mentioned on another article. It turns out that Wilder actually developed several other well-known indicators, including the Relative Strength Index, Directional Movement…
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The Ichimoku Cloud: A Complete Guide
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The Ichimoku Cloud, also known as the Ichimoku Kinko Hyo, is a versatile technical analysis indicator developed by Goichi Hosoda in the 1930s. After tweaking it for years, Hosoda felt he found the ideal settings for his indicator. Now, it helps traders identify support and resistance levels, gauge trend direction,…
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The Stochastic Oscillator: A Complete Guide
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The Stochastic Oscillator, or Stochastic Indicator, is a popular technical analysis tool that helps traders identify potential overbought and oversold conditions in the market. Developed by George C. Lane in the 1950s, this momentum oscillator measures the position of a security’s closing price, relative to its price range over a…