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Type of Securities Investment Strategies Fundamental Analysis Technical Analysis

Technical  Analysis Categories

 - Types of Charts
      * Bar Charts
      * Line Charts
      * Candlestick Charts

 - Chart Reading
      * Trendlines
      *  Resistance Levels
      *  Support Levels

 - Moving Average
     * Simple Moving Average
      * Weighted Moving Average
      * Exponential Moving Average
      * Triangular Moving Average

 - Momentum Indicators &
    Oscillators
 - Rate of Change
 - Relative Strength Index
 - Moving Averages
    Convergence /  Divergences
 - Price Oscillator
 - Stochastic
 - Money Flow Index
 - Williams %R
 - Volume + Moving Average

 - Stock Chart Overlays:
 - Bollinger Bands
 - Parabolic SAR

 - Stock Chart Patterns:
     * Head and Shoulders
     * V Formations
     * Double Tops and Bottoms
     * Triple Tops and Bottoms
     * Saucers - Rounded Tops and
         Bottoms
     * Ascending, Descending and
         Symmetrical Triangles
     * Channels - Rectangles
     * Rising and Falling Wedges
     * Bullish and Bearish Flags
     * Pennants
     * Diamonds
     * Cup and Handle
     * Pan and Handle
     * Spikes
     * One-Day Reversals
     * Island Reversal

 - Dow Theory

 - Elliot Wave Theory

 - Spinella Heart Rate Theory

 - Fibonacci

 

 


Technical Analysis Overview

My goal in writing this section is to help investors understand the language of technical analysis and to assist them in implementing these techniques in their everyday investment decisions. To a certain degree, most experienced investors have already been applying many of the concepts of technical investing. Now, with the advent of the Internet and with the free models and charts on websites, technical analysis has become standardized and integrated in the mainstream of investing. The mathematical statistics and charts that were once only available to professional traders, are now free and easily accessible on the Internet. The difficulty is in understanding the language. The concepts, when explained, are relatively basic. While the mathematics may seem advanced, the computer now performs the calculations. It’s imperative that one understands the calculations behind the charts, before relying on the indicators. Investors need to know the formulas, but focus on the concepts.

Yahoo and StockCharts.com are introducing a new generation of potential stock investors to technical analysis, just as Value Line and Standard and Poor’s exposed the prior generations to fundamental analysis.

As I mentioned in the stock strategy section of this website, technical investing is a market and stock timing discipline. The participants analyze charts and graphs as their tools in making investment decisions. Technical investors fundamentally believe in the efficient market theory: that all information on the markets and on individual stocks is known and is priced into the securities, and that securities are fairly valued at all times. What moves the markets and individual stocks are the emotions, reactions and psychology of individuals, regarding economic news and events. Technical investors believe that reactions fall into repetitive and predictable patterns, which can be measured by using charts and graphs. By identifying these patterns early and by determining where on the chart your investment lies, there is a probability of predicting future price movements, that can aid in your stock buying or selling decisions.

There are basically two types of technical analysts: those who rely on mathematical indicators in choosing and timing their transactions, and those who evaluate and interpret chart patterns in their trading decisions. Attached is an article from The Street .Com that may be of interest.
 

 

 

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