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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

 

 


 Volume + Moving Average (“MA”)

Volume, one of the most widely used methods of measuring investor sentiment for a stock, represents the number of shares exchanged in a given period. The buying and selling of one share equals one unit of volume.

A moving average line is used as a benchmark comparison to gauge the activity and money flow in a stock. The MA statistic smoothes the fluctuations that are inherent in volume data, making the direction of volume visible and thus useful to investors. Yahoo uses a 13-day EMA overlay on their technical analysis screens.

Below is a diagram of volume with a MA overlay; Corning is used as an example:

Reproduced with permission of Yahoo! Inc. ă 2004 by Yahoo! Inc.
YAHOO! and the YAHOO! logo are trademarks of Yahoo! Inc.

High activity in a stock, when compared to its MA, will usually affect the company’s stock price. Normally, when volume and prices are high, the market is bullish on the company. Conversely, when volume and prices are low, the market is cautious and bearish on the company.  

High volume is also an indication of where the professional and institutional money is active.

Volume statistics have been reported in newspapers as long as I can remember. When compared with the stock price, volume is an excellent easy-to-use gauge of sentiment, and on the price direction of a security. 

Click below for more information on oscillators:
Rate of Change
Relative Strength Index
MACD
Price Oscillator
Stochastic
Money Flow Index
Williams %R

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