technical analysis and indicators
Educational articles in this subcategory.
Glossary: Technical Indicator Terms
This glossary defines 30 technical indicator and chart analysis terms with concise, one-sentence definitions focused on practical application. Updated...
How Technical Signals Tie into Macro Context
Technical signals do not operate in isolation. A breakout above resistance means something different when the Federal Reserve is cutting rates versus ...
Common Mistakes in Technical Analysis
Technical analysis applied incorrectly produces confident-sounding predictions with poor results. The most common failures come from curve fitting (op...
Risk Management for Chart-Based Trades
Technical traders who survive long-term share one characteristic: **they size positions based on risk, not conviction**. A trader risking 5% of capita...
Backtesting Basics for Retail Traders
Backtesting applies trading rules to historical price data to measure how a strategy would have performed. A retail trader testing "buy when RSI falls...
Scanning Tools for Technical Setups
**Scanning tools filter thousands of stocks down to actionable candidates.** Without a screener, you're manually reviewing charts one at a time—an app...
Combining Indicators Without Double Counting Signals
**More indicators does not mean more confirmation.** If you require RSI above 50, MACD positive, and Stochastic above 50 before buying, you haven't ad...
Seasonality and Cycle Studies
**Seasonality identifies recurring patterns in market returns tied to calendar periods.** The S&P 500 has historically returned **+7.1% from November ...
Point and Figure Charting Overview
**Point and figure (P&F) charts ignore time and focus purely on price movements.** Unlike candlestick or bar charts that plot every trading day, P&F c...
Market Breadth Indicators to Watch
**Market breadth measures how many stocks participate in a market move.** A rally driven by 400 advancing stocks is fundamentally different from one d...
Ichimoku Clouds Basics
The Ichimoku Kinko Hyo (translated as "one glance equilibrium chart") is a technical indicator system developed by Japanese journalist Goichi Hosoda i...
Breakout and Breakdown Confirmation Rules
Breakouts and breakdowns occur when price moves beyond established support or resistance levels. Many of these moves fail, reversing back into the pri...
Chart Patterns: Triangles, Flags, and Pennants
Triangles, flags, and pennants are consolidation patterns that typically resolve in the direction of the prior trend. Recognizing these patterns allow...
Fibonacci Retracements and Extensions
Fibonacci retracements and extensions provide a framework for identifying potential price levels where trends may pause, reverse, or extend. These lev...
Average True Range and Volatility Stops
Stop-losses set at arbitrary dollar amounts or fixed percentages often get triggered by normal price fluctuations. Average True Range (ATR) solves thi...
Volume Analysis and On-Balance Volume
## What Volume Measures Volume represents the total number of shares (or contracts) traded during a specified period. Unlike price, which shows direc...
Momentum Oscillators: RSI, Stochastics, and MACD
## What Momentum Oscillators Measure Momentum oscillators quantify the speed and magnitude of price changes. Unlike price charts that show direction,...
Moving Averages: SMA, EMA, and WMA Use Cases
## What Moving Averages Measure Moving averages smooth price data by calculating average values over a specified lookback period. They reduce noise f...
Support, Resistance, and Trendline Construction
## Core Definitions Support and resistance are price levels where buying or selling pressure has historically concentrated. Trendlines connect multip...
Candlestick, Bar, and Line Charts Compared
## What Each Chart Type Displays Technical analysis relies on price charts to visualize market data. The three most common chart types—line, bar, and...