What is Technical Analysis? Technical analysis is a tool, or method, used to predict the probable future price movement of a security – such as a stock or currency pair – based on market data. The theory behind the validity of technical analysis is the notion that the collective actions – buying and selling –…
What is Trade Order Timing? Trade order timing allows investors to set the amount of time a trade order is good for. The different types of trade order timing each have different advantages and disadvantages that play along with the different strategies an investor may have or wish to use. The following are the most…
Head and Shoulders Pattern Traders and analysts constantly study trends and patterns when watching the market in hopes of detecting the next most probable price movement. Spotting and correctly identifying patterns and understanding their significance is vital to successful trading. The head and shoulders pattern is important because of its longstanding history of reliability among market…
How to Trade the Forex Market Whether you’re an individual trader or a financial or investment professional, the foreign exchange (forex) market, also known as the currency or foreign currency market, is where the money is. Forex trading amounts to approximately $5 trillion (yes, trillion, not billion) per day. By comparison, the approximately $700 billion…
How to Read Stock Charts If you’re going to actively trade stocks as a stock market investor, then you need to know how to read stock charts. Even traders who primarily use fundamental analysis to select stocks to invest in still often use technical analysis of stock price movement to determine specific buy, or entry,…
Investing for Beginners Here it is! – That thrilling (and insightful) guide to investing for beginners that you’ve been dreaming about finding all your life. Well, perhaps we’ll leave “thrilling” to your judgment. However, we are quite confident that you’ll become more than just a little excited when you learn the truth about the wide…
What is the TRIN Indicator? The TRIN indicator, also known as the ARMS index because it was developed by Richard Arms, is functionally an oscillator-type indicator that is primarily used to identify short-term overbought or oversold conditions in the stock market. It does this by comparing advancing versus declining stocks, along with advancing versus declining…
What is ADX Indicator? The Average Directional Movement Index (ADX) was developed by famed technical analyst Welles Wilder as an indicator of trend strength. As a commodity trader, Wilder developed the indicator for trading commodity futures. However, it has since been widely applied by technical analysts to virtually every other tradeable investment, from stocks to…
What is the MACD Oscillator? The Moving Average Convergence Divergence (MACD) oscillator is one of the most popular and widely used technical analysis indicators that traders and analysts use to gauge momentum in markets. Traders and analysts use a variety of technical indicators to spot trends in the market, anticipate potential shifts in trading, and, ultimately to…
What are Speed Lines? The technical analysis tool of speed lines was developed by Edson Gould, a technical analyst who became quite well-known for making several accurate stock market calls during the 1960s and 1970s. They are sometimes referred to as “speed resistance lines,” however, that moniker is somewhat misleading since the lines are designed…
