Technical Analysis

The Pros and Cons of Trading Based on the 200 Day Moving Average

The Pros and Cons of Trading Based on the 200 Day Moving Average

Stock moving averages can be calculated across a wide range of intervals, making them applicable to both long and short-term investment strategies. When navigating the financial markets, traders can choose from a number of tried-and-true strategies. One of the most...

4 Key Market Internal Indicators for Day Traders

4 Key Market Internal Indicators for Day Traders

What are market internals? Market internals give us a peek “under the hood” of the market, if you will. From them we gleam insights into the market’s breadth. The S&P may be up on the day, but the market internals may tell a different story. It may be one sector...

A Comprehensive Guide to the RSI Indicator

A Comprehensive Guide to the RSI Indicator

What is the Relative Strength Index (RSI)? The relative strength index (RSI) is a straightforward indicator for identifying when an equity has been overbought or oversold following recent price actions. The RSI is widely used by traders for its ease of interpretation...

A Comprehensive Guide to Cup and Handle Patterns

A Comprehensive Guide to Cup and Handle Patterns

The cup and handle pattern was first introduced in 1988 by analyst William O’Neill and has since become a favored chart pattern among traders because it is relatively straightforward to recognize and trade on. The pattern forms during as a result of consolidation a...

A Comprehensive Guide to Wedge Patterns

A Comprehensive Guide to Wedge Patterns

Wedge patterns are chart patterns similar to symmetrical triangle patterns in that they feature trading that initially takes place over a wide price range and then narrows in range as trading continues. However, unlike symmetrical triangles, wedge patterns are...

A Comprehensive Guide to Triangle Patterns

A Comprehensive Guide to Triangle Patterns

Triangle patterns are a chart pattern commonly identified by traders when a stock price’s trading range narrows following an uptrend or downtrend. Unlike other chart patterns, which signal a clear directionality to the forthcoming price movement, triangle patterns can...

A Comprehensive Guide to Stochastics

A Comprehensive Guide to Stochastics

Stochastics Oscillator The stochastics oscillator, developed by analyst George Lane in the 1950’s, is a momentum indicator used widely by traders to predict reversals in trending stocks. While the stochastics oscillator can be used similarly to MACD, the stochastics...

A Comprehensive Guide to PSAR

A Comprehensive Guide to PSAR

PSAR The Parabolic Stop-and-Reverse (PSAR) indicator places a set of dots on a chart in order to highlight whether a stock is trending up or down and to indicate when a price trend breaks ahead of a potential reversal. PSAR was developed by Welles Wilder in 1978 and...

A Comprehensive Guide to Fibonacci Retracements

A Comprehensive Guide to Fibonacci Retracements

About Fibonacci Retracements Fibonacci retracements are a set of ratios, defined by the mathematically important Fibonacci sequence, that allow traders to identify key levels of support and resistance for stocks. Unlike moving averages, Fibonacci retracements are...

A Comprehensive Guide to Bollinger Bands

A Comprehensive Guide to Bollinger Bands

Bollinger Bands Bollinger Bands, developed by financial analyst John Bollinger, are a technical indicator that account for volatility to indicate when a stock is overbought or oversold. Bollinger Bands describe lines corresponding to twice the standard deviation of...