Technical Analysis Archives - Page 3 of 4

Stochastic RSI vs RSI: Is one better than the other?

Stochastic RSI vs RSI Indicator: Is one better than the other?

RSI, Techncial Indicators, Technical Analysis, Technical Indicators / Steve Burns

The following is a guest post from @PatternsWizard of PatternsWizard.com What is the Relative Strength Index (RSI)? RSI is a technical indicator used in technical analysis that helps to gauge the velocity of price changes. It is also a momentum oscillator and can point to overbought/oversold market conditions. RSI functions on the assumption that prices tend […]

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Oversold Stocks Checklist

Technical Analysis, Technical Indicators / Steve Burns

Oversold is a technical analysis term for when the price of a company’s stock is considered too low from a technical view point. Value investors can also measure a stock as oversold from a fundamental perspective of business value. Oversold stocks are shares in a company that have gone down so far and so fast

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Exhaustion Gap Definition

Chart Patterns, Chart Reading, Technical Analysis / Steve Burns

An exhaustion gap is a bearish reversal signal on a chart that occurs after a sharp move higher. An exhaustion gap happens near a high in price on a chart when a space forms between a closing price and a lower opening price. This pattern generally has the most meaning on a daily chart. This

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Is Technical Analysis a Self Fulfilling Prophecy?

Technical Analysis / Steve Burns

A self-fulfilling prophecy is a process where an original expectation creates the conditions of its own reality. With a self-fulfilling prophecy expectations and behaviors about a future event cause the result that confirm the original prediction. Some speculate that the reason that price support levels and price resistance levels have meaning is because people believe

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What is the CCI Indicator?

Techncial Indicators, Technical Analysis, Technical Indicators, Technicals / Steve Burns

The CCI indicator (commodity channel index) is an oscillator originally created in 1980 by Donald Lambert . He developed CCI originally to identify and quantify cyclical moves in commodity charts, but this technical indicator has also been used on stock indexes, exchange traded funds, stocks and charts of other markets. It can be used as

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New Technical Indicator: Steve Burns Moving Averages Ribbon

Moving Average Strategy, Moving Averages, Techncial Indicators, Technical Analysis / Steve Burns

The Steve Burns Ribbon technical indicator is a new tool for the technical analysis of stock trends by combining key moving averages. The MA Ribbon by Steve Burns is currently available on the TrendSpider.com charting platform and can be searched in indicators and loaded onto charts. The moving averages in the Steve Burns Ribbon can

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Introduction to Technical Indicators and Oscillators

Techncial Indicators, Technical Analysis / Steve Burns

Technical analysis indicators derive their readings by applying a formula to a series of price data on a chart. The historical price data used can include samples of the opening price as well as the high and low or closing price over a specified time period. Different technical indicators will use different types of price

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Trading Chart Patterns Step by Step

Chart Patterns, Technical Analysis / Steve Burns

Chart patterns are visual representations of the behaviors of buyers and sellers around different price levels. Chart patterns are bullish when a chart is making higher highs and higher lows, they are bearish when they are making lower highs and lower lows, and range bound when they have defined support and resistance levels and no

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Ten Best Books on Technical Analysis

Technical Analysis, trading books / Steve Burns

In trading the financial markets, technical analysis is a method for analyzing price action on a chart to forecast the probability of the future direction of the trend. Technical analysts use charts and the patterns of price data and volume to find key levels of support and resistance along with the path of least direction

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Retracement Meaning

Chart Patterns, Chart Reading, Technical Analysis, Trading / Steve Burns

A retracement on a chart means that there is a temporary pullback on the direction of the price action against the longer term trend. A retracement can return to a previous vertical support level like an ascending or descending moving average or a Fibonacci level while a reversal breaks a key previous support or resistance

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What is the McClellan Oscillator?

Technical Analysis, Technical Indicators / Steve Burns

The McClellan oscillator is a market breadth technical indicator used by traders to analyze the New York Stock Exchange listings balance between the advancing and declining stocks over time. The McClellan oscillator quantifies the Advance-Decline Data on a stock market exchange, it could also be used on stock indexes, portfolio holdings, or any watchlist of

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How to Identify Supply and Demand Zones on a Chart

Supply and Demand Zones, Technical Analysis / Steve Burns

How do you identify supply and demand zones on a chart? Areas of supply for a market is at overhead price levels is what creates resistance. An area of supply is a price zone where many traders and investors are holding a stock and willing to sell it. Overhead resistance is created when people sell

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RSI Divergence Cheat Sheet

divergence trading, Technical Analysis, Technical Indicators / Steve Burns

An RSI divergence indicator signal shows traders when price action and the RSI are no longer showing the same momentum. The RSI shows the magnitude of a price move in a specific timeframe. The RSI is one of the most popular oscillators used in technical analysis. A divergence looks at it in relation to the

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Technical Analysis Cheat Sheet

Techncial Indicators, Technical Analysis, Technical Indicators, Technicals / Steve Burns

Technical analysis is the art and science of reading price action on a chart. Here is a quick reference guide that can be used as a cheat sheet. A range bound market can be identified by horizontal upper resistance and horizontal lower support. When price breaks out of a trading range it can signal the

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Is Technical Analysis BS?

Technical Analysis / Steve Burns

Is technical analysis bullshit? Many people will dismiss technical analysis as useless before doing the homework to even fully understand what it is or how it should be used. Dismissing technical analysis as bullshit after hearing that academics dismissed it in a paper is like saying no one can make any money in the stock

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Common Mistakes in Technical Analysis

Technical Analysis / Steve Burns

Technical analysis can be both an art or a science based on how you use it. It is very easy to become too rigid in its practice believing it can become a crystal ball or too flexible and see whatever you want to see. Here are ten common mistakes people make in the practice of

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What a MACD Indicator Crossover Signals

Technical Analysis, Technical Indicators / Steve Burns

The MACD is an abbreviation for the moving average convergence/divergence technical trading indicator and is used in technical analysis to filter the trends, swings, and momentum of price action. It is designed to reveal changes in price strength, direction, momentum, and duration for the moves of trends and swings. The MACD is a simple visual momentum indicator. The

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Finding An Edge During A Stock Market Crash

Chart Reading, Technical Analysis, Technical Indicators / Steve Burns

This is a video guest post by Jake @TrendSpider. Chart Courtesy of TrendSpider.com

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What is Elliott Wave Theory?

Elliott Wave, Technical Analysis / Steve Burns

Elliott Wave Theory is a method of technical analysis that traders use to analyze and quantify price patterns in financial markets by looking at cycles. The theory believes that changes in investor sentiment and their psychology creates impulse waves and corrective waves inside the larger trends in market price action. The theory attempts to forecast market

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How To Use Moving Averages As Price Action Signals

Moving Average Strategy, Moving Averages, Technical Analysis / Steve Burns

Moving averages are technical trading tools that can help identify trends on different time frames. They can replace opinions and predictions for making trading decisions by being used as signals. Moving averages can identify trends in real time but are not as useful during choppy or range bound markets. Here are ten ways to use

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