technical analysis
Price pattern study
Technical analysis is a method of evaluating securities by analyzing statistics from market activity—primarily price movements and trading volume.
Practitioners study charts and patterns to predict future price behavior, operating on the assumption that historical trading data reveals trends likely to repeat.
Technical analysis contrasts with fundamental analysis, which examines a company's financial health and intrinsic value.
The chart showed a classic head-and-shoulders pattern, so her technical analysis suggested selling.
Smoothed price over time
- RSIChronic motion damage
- stochasticRandomly determined, statistically describable
- volumeAmount of space filled
- pivot pointsCenters of rotational movement
momentum · oscillator · leading indicator · divergence · convergence · overbought · oversold · crossover
Where access begins
- exit pointDesignated departure location
- stop lossPreset sale trigger
- backtestingValidating strategies using history
- paper tradingSimulated market transactions
swing trading · day trading · scalping · confirmation · false signal · whipsaw
To uphold or sustain
- resistanceCapacity to withstand force
- trendlineStatistical direction indicator
- uptrendSustained price increase
- downtrendSustained decrease over time
breakout · breakdown · reversal · consolidation · accumulation · distribution · pullback · retracement
Distinctly better than others
- double bottomSecondary hull for safety
- wedgeTapered splitting tool
- flagCloth symbol or signal
- pennantTapering nautical flag
channel · rectangle · hammer · shooting star · morning star · evening star · spinning top · gap
Wax cylinder support
- bar chartRectangular data visualization
- line chartGraph connecting sequential points
- logarithmic scaleMeasurement showing multiplicative change
- time frameDesignated period for completion
moving average
Smoothed price over time
- RSIChronic motion damage
- stochasticRandomly determined, statistically describable
- volumeAmount of space filled
pivot points · momentum · oscillator · leading indicator · divergence · convergence · overbought · oversold · crossover
entry point
Where access begins
- exit pointDesignated departure location
- stop lossPreset sale trigger
- backtestingValidating strategies using history
paper trading · swing trading · day trading · scalping · confirmation · false signal · whipsaw
support
To uphold or sustain
- resistanceCapacity to withstand force
- trendlineStatistical direction indicator
- uptrendSustained price increase
downtrend · breakout · breakdown · reversal · consolidation · accumulation · distribution · pullback · retracement · rally
head and shoulders
Distinctly better than others
- double bottomSecondary hull for safety
- wedgeTapered splitting tool
- flagCloth symbol or signal
pennant · channel · rectangle · hammer · shooting star · morning star · evening star · spinning top · gap
candlestick
Wax cylinder support
- bar chartRectangular data visualization
- line chartGraph connecting sequential points
- logarithmic scaleMeasurement showing multiplicative change
- analysisevaluate, examine, assess, interpret, compare
- investingstocks, stock, bonds, investing, investor
- investing topicsstock tips, mutual funds, index funds, value investing, growth investing
- expert opinionsmedical opinion, legal opinion, second opinion, peer review, forensic report
- investing educationfinancial literacy, portfolio management, asset allocation, diversification, value investing
- Online Tradingtrading platform, trading app, buy order, sell order, market order
technical analysisvalue investing
Buying underpriced stocks fundamentally
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