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The Foundation of technical analysis is the Chart.

This technical analysis will be very useful for those who are new to technical analysis in share market. The following points will explain how to make use of different types of indicators, support level, resistance level etc.If proper technical analysis is done then the investment strategies will improve drastically.This article has all basic terms of technical analysis but this will give you better idea of the share market but if you are interested to know more about technical analysis then

Basics of Technical analysis (1) What Are Charts?

Charts : 1. Line Charts2. JapaniseCandlestick Chart  3. Bar Charts

Line charts Displays Stocks closing prices

CANDLESTICK CHARTS displays stocks open high, low, and closing price. 

These type of charts are the most popular type of all charts.As shown below the top of each vertical bar represents the highest price of the stock and the bottom of the bar represents the lowest price of the stock it reached on that day. A closing price (last price) is displayed on the right side of the bar. The red bar indicates that stock has closed lower then its open price and white bar indicates that the stock has closed above its open price. At the bottom you can see time frame.

For more learning about candilestic patters visit : http://www.metacafe.com/watch/yt-f9EozCtA6XE/candlestick_patterns_for_trading_2/

To more above : http://www.metacafe.com/watch/yt-q-wbRPjacbU/candlestick_patterns_3_min_crash_lesson_18_bearish_harami/

Basics of Technical analysis (2) Meaning of Support and Resistence

Moving Averages

Moving averages are one of the oldest and most popular technical analysis tool.

To brief you moving average is calculated by adding the closing prices of a stock for most recent 15 days and then dividing by 15 the result what you get is the 15 day moving average. 

How to trade on moving average

Suppose If the stock price is above its 25 day moving average, it means that investor's current expectations (the current price of the stock) are higher than their average expectations over the last 25 days, and that investors are becoming increasingly bullish on this stock and result is that the stock price may go up.

Conversely, if today's price is below then its 25 day moving average, it shows that current expectations are below average expectations over the last 25 days and this may bring stock price lower..

The moving average is used to observe changes in prices. Investors typically buy when a stock price rises above its moving average and sell when the price falls below its moving average.  Simply to say

> 25 days average = Stock price come UP < 25 days average = Stock Price come DOWN

1. Moving Averages - Used to find trend of the stock, support, resistance* SMA Simple Moving Average is one of the simplest indicators to calculate. It

gives the average price of stock over a specified period of time. Generally Moving Averages are calculated for the closing prices of the stocks at the end of the day. But you may also calculate for the High, Low, Close and even on the traded Volumes of the stock.

For example, the 9 period SMA gives the average closing price of the stock for the past 9 days. It is calculated as follows:

If P1 represents the price on day 1; P2 represents the price on day 2 and so on, then SMA for period n is calculated as follows:

SMA (for period n) = ( P1 + P2 + P3 + …… + Pn ) / n

So for example, if the close prices of a stock for 4 consecutive days are as follows: 120, 121, 122 and 123.

Then the SMA (for period 4) = (120 + 121 + 122 +123) / 4

So SMA (for period 4) becomes 486/4 = 121.5

How to trade with Moving Averages ?

Moving Averages are particulary useful in identifying the direction of an uptrend or downtrend of stocks and markets in general. They are based on the previous data and hence are generally referred to as lagging indicators which help us in locating the trend and following on in the trend . Since they do not allow you to predict the trend, you have to use other technical indicators in conjunction with them during trading.

Generally, the most common way to trade with the Moving averages is this - If the price crosses above the moving average, it means that a buying interest has set in - and thus indicates a buy signal. Similarly when the price crosses down the moving average, it means that a selling pressure has set in - thus indicates a sell signal.

Although it helps in indicating the current trend, it does not indicate for how long this trend would continue or when does the reverse trend begin. So traders should be cautious about this when using the moving averages for planning trades. It is also important to consider the volume for the security in question before trading. Sporadic movements with low volumes can generate erratic signals.

Example : Look at this chart of Reliance capital shown below. The bold yellow line indicates the price and the thin blue line indicates the 9-day Simple Moving Average of the Close price of this stock.

Longer and shorter Moving Averages

Moving averages can be configured any period of your choice. The most common ones are 9 Day, 30 Days, 50 days and the 200 Day Moving averages. The longer the period, smoothing will be more. Thus in stocks which display a great deal of sharp glitches and breaks, longer moving averages would make sense, as smoothing would be better. Choosing short period moving averages in such cases would result in erratic signals.

Short trends are identified by short period MAs - like the 9 day and 15 day MAs. A medium term trend is given by the 30 - 50 day moving averages. 100 and 200 day moving averages can indicate the intermediate long term trends.

Trading with Moving average Crossovers

Plotting both long term and short term Moving averages for the same security can lead to crossovers. This can also indicate some trading signals in some cases. A buy signal is generally assumed if the short term moving average crosses over the long term moving average. Similarly a sell signal can be indicated when the short moving average falls down the long term moving average.

Example: Look at this chart of the stock ABB in the NSE. The bold yellow line signifies the price movement of the stock. The blue line is the 30 day EMA and the brown line is the 200 day EMA.

As can be seen from the chart, when the short term MA i.e the 30 day EMA (blue line) crosses over the long term MA ( 200 day EMA - brown

line), then an uptrend is identified and thus a buy signal is generated.

As indicated earlier, MA can help in identifying trends and can give late trading signals. When used with other technical indicators, they can be very helpful in determining trading strategies.

* EMA Exponential Moving Average (EMA)

Exponential Moving Average (EMA) statistically applies exponentially decreasing weighting factor to the data. Thus EMA results in providing more importance to the recent variations in the data. So EMA reacts sharply to the recent data when compared to the SMA.

EMA for the Close price of a security is calculated as follows:

EMAc = (ClosePrice x Factor) + ( EMAp x (1-Factor) )

where: EMAc = Current EMA

EMAp = Previous EMA

ClosePrice = Current Closing Price

Factor = 2 / (n+1) , where n is the period for which EMA is calculated

* TRIX A triple-smoothed Moving Average of price movements.

2. Stock Volatility * BBW = Bollinger Band Width   

A band plotted two standard deviations away from a simple moving average

In this example of Bollinger bands, the price of the stock is banded by an upper and lower band along with a 21-day simple moving average.

Shows the distance between a stock's Bollinger Bands

Bollinger bands are envelops that surround the price bars on a chart. Click here to see an example. Bollinger band consists of the middle band, upper band and lower band. Middle band is a simple moving average (N period), upper band is K times N period standard deviation above the middle average and lower band K times N period standard deviation below the middle average. For short term trading, the simple moving average is suggested to be 10-days simple moving average, 20 days for intermediate and 50 days for long-term trading. Standard deviations for short term trading should be 2 for lower band and 20 for upper band.Note that bollinger bands do not generate any buy or sell signals. Not all by themselves that is. They should be used with other technical indicators such as relative strength index (RSI). For example, if the price touches the upper band and  RSI   is below 70 then this is an indication that the trend will continue. If the price touches the lower band and the  RSI   is above 30 then this is also an indication of trend continuation.If you want to see possible trend reversals on the chart with bollinger bands and  RSI   then it can be seen IF the price touches the upper band and the  RSI   is above 70 or if the price touches the lower band and the  RSI   is below 30.For computing bollinger bands, usually close prices are being used.Bollinger bands have mainly two uses, to identify high and low periods and to identify prices that are on extreme levels. Contracting bands also give an indication that the market is about to trend – the first breakout is often a false alarm follower by the move towards the opposite direction.Duh...I do agree it might sound complicated...even to me. And you might not fully understand it - the reason for that is that I don't fully understand it either, so there might be some updates to this post soon. However, as I learn something every day (even if I'm not posting it here), I believe in the idea that even if I knowlingly can't always understand something or if I can't remember some things later, the general understanding of it all is generating itself in my brain...so even if I don't complitely understand something, I still get SOMETHING from it...and I hope you do too. And when going back to it afterwards, it will be a lot easier to understand.

* CCI  = Commodity Channel Index Shows : a stock's variation from its 'typical' price.* ATR  = Average True Range Measures : a stock's volatility.

It’s a measure of volatility. It’s used as one component in many other technical indicators.

There are different ways to calculate ATR – for example from today’s high to today’s low, from yesterday’s close to today’s high or low. Usually ATR is a 14-day moving average of the true ranges.High ATR values are often visible in market bottoms. Low ATR values are often visible during extended sideways periods in market tops.

3. Overbought and OversoldRSI = Relative Strength Index

RSI=/>70 = Over Sold /BearishRSI=/<30 = Over Bought /Bullish

Shows how strongly a stock is moving in its current direction.

RSI Definiton and Calculation

RSI is a popular technical indicator that was developed by Welles Wilder. It is very popular because its very simple to interpret this indicator. It is an oscillator indicating the overbought and oversold conditions of the stock.

RSI is based on the comparison of the magnitude of the gain to the loss. It is the ratio of the EMA of Upward(U) and Downward(D) movements, which is then normalized to values between 0 to 100.

So, if : Pc represents the current Closing price

Pp represents the previous Closing price,

then on a day when the stock has closed up, U = Pc - Pp and D = 0

Similarly on a day when the stock has closed down, D = Pp - Pc and U = 0

Then EMA is calculated for U and D for a period n , represented respectively by EMAup and EMAdn.

Now RSI is calculated as follows: RSI = 100 x (EMAup / (EMAup + EMAdn) )

How to trade with RSI ?

Generally a 14 period RSI is plotted for the close prices of the stock. RSI Value of 70 and above is considered to indicate that the stock is in Over Boughtcondition. Similarly an RSI value of 30 and below is considered to indicate that the stock is in Over Sold condition.

The Over Bought condition indicates that the stock price may be getting over valued and in the next trend may be a candidate for pullback in the downward direction. Similarly the over sold condition indicates that the stock may be getting under valued and in the next trend may be a potential candidate for a pullback rally in the upward direction.

Example : Consider this chart of the Infosys Technologies stock in the NSE:

The yello line at the top indicates the Close price of the stock over a period of time. The bottom line in torquoise blue indicates the 14 day RSI for the Close price of the stock.

As you can see in the chart, when the RSI values have crossed the 70 value, the stock enters the Overbought zone and becomes a candidate for pulldown thus giving a sell signal. Thus a downtrend in the price of the stock is seen after this condition.

Similarly when the RSI values have come below 30, the stock enters the Oversold zone and becomes a candidate for pullback thus giving a buy signal. Thus an uptrend in the price of the stock is seen after this condition.

However large surge and drops in the price of the stock will affect the RSI heavily and can lead to erratic buy and sell signals. So RSI should always be used in conjunction to other technical indicators to confirm the buy and sell signals.

Stochastic Oscillator (Fast, Slow, Shows how a stock's price is doing relative to past movements.

Full)  Fast, Slow and Full Stochastics are explained.Stoch RSI  Combines Stochastics with the RSI indicator.

Helps : you see RSI changes more clearly.Ultimate Oscillator  Combines long-term, mid-term and short-term moving averages

into one  numberWilliams %R  Uses Stochastics to determine overbought and oversold levels.

Previously I talked about  Parabolic SAR   indicator and that it can be used with Williams %R indicator. It is similar toStochastic Oscillator with the difference that Williams %R has upside down scale while Stochastic Oscillator has internal smoothing.What is Williams %R indicator?Williams %R indicator was developed by Larry Williams and it is a momentum indicator. It is usually used to find overbought and oversold levels in non-trending markets. The value of William %R is static 0 to -100. Readingsbelow -20 are considered overbought and readings above -80 are considered oversold. The usual time period is 14-days for this indicator. Note that when conducting your  analysis   you shouldn’t pay attention to the minus in the %R value.Basically, if within that time period the price is near the high end of the price range then the equity is usually considered overbought. And if it is near the low end it usually means it’s oversold.Williams %R is considered to be a leading indicator – meaning that the line of Williams %R gets to the top or bottom before the price does. Often it is suggested to before making your move, wait until the price actually moves. Williams %R is interesting in the meaning that it almost always forms a peak and turns down a couple of days before the stock’s price peaks and turns down.Here is the calculation for Williams %R indicator –Williams %R = (HIGH(i-n)-CLOSE)/(HIGH(i-n)-LOW(i-n))*100HIGH(i-n) is the highest high over a number (n) of previous periods and LOW(i-n) is the lowest low over a number (n) of previous periods.

4. Money FlowAccumulation/Distribution Line Combines price and volume to show how money may be flowing into or out of a

stock.CMF = Chaikin Money Flow   Combines price and volume to show how money may be flowing into or out of a

stock. Alternative to Accumulation/Distribution Line.

Chaikin Oscillator Combines price and volume to show how money may be flowing into or out of a stock. Based on Accumulation/Distribution Line.

MFI = Money Flow Index Combines a stock's 'typical' price with its volume to show how money may be flowing into or out of the stock.

OBV = On Balance Volume Combines price and volume in a very simple way to show how money may be flowing into or out of a stock.

5. Support and ResistanceParabolic SAR 

Use @ Trend for Trialing SLDo not use without Trend(Trend Period is 30% time)

Parabola = Shape / TrendSAR = Follow

A chart overlay that shows good 'trailing stop' (i.e., sell/exit) points graphically.

Parabolic SAR is a very useful technical indicator during trending periods. However, it shouldn’t be used if there is no trending period. Trend periods exist approximately 30% of the time.In trending markets it provides useful entry and exit points. The name parabolic comes from its shape which is like a parabola. SAR lets our investor follow the dots in an upward or downward trend until SAR is reached and then the trend reverses.SAR’s stop loss is calculated for each day via the previous days data. The first entry point can be seen when the latest high price has been broken – now the SAR is placed at the most recent low price.Now as the price starts to rise, the dots on the chart rise as well – starting slowly and then going on with increasing speed in the direction of the trend.Before you consider using SAR, make sure you actually are working with a trending market as otherwise you’re dead. To do that you can either use a trend indicator or stop trading SAR once you have been whipsawed twice in a row.To get a trade signal you’ll need to wait until price bars and stop levels intersect. You should go long when price meets Parabolic SAR stop level, while short. And vice versa. Note that Parabolic SAR is more popular for setting stops than for establishing direction or trend. First wait for the establishment of a trend and then trade in the direction of a trend with Parabolic SAR. If the trend is up, buy when the indicator goes below the price. If the trend is down, sell when the indicator goes above the price.

You should ignore signals when the price is ranging or basically when you don’t see any major movements. Exit when price activates the SAR stop. Do not go short when moving average is going upwards. Go long when price crosses back above the top and MA is still upwards.I have been searching, but so far I haven’t been able to find the exact formula on how the Parabolic SAR is constructed. But there are two variables – step and maximum step. The sensitivity of the indicator depends on the step size – the higher the more sensitive. You shouldn’t set it too high as then you won’t get a too good reading. The maximum step controls the adjustment of the SAR within the price movements. The lower the maximum step is set, the further the trailing stop will be from the price. Good values for the steps are – step=.02 and maximum step .20.

PS: Parabolic SARS can be used in conjunction with the  Williams %R   indicator as they tend to function similar way on certain trends and signals. Also HLOC or candlesticks  charts   could be used to study SAR a bit better as these include days high and low prices as well.PS2: I finally managed to find the calculation for Parabolic SAR.SAR(i) = SAR(i-1)+ACCELERATION*(EPRICE(i-1)-SAR(i-1))Where:SAR(i-1) — is the value of the indicator on the previous bar;ACCELERATION — is the acceleration factor;EPRICE(i-1) — is the highest (lowest) price for the previous period (EPRICE=HIGH for long positions and EPRICE=LOW for short positions). (thanks to Metaquotes.net)

Pivot PointsFibonacci Retracement levels

A charting technique consisting of three curved lines that are drawn for the purpose of anticipating key support and resistance levels, and areas of ranging

Fibonacci numbers & ratiosElliot Wave uses fibonacci numbers as a part of its theory. What are fibonacci numbers? To get a sequence of fibonacci numbers you would add the previous number to the current number to get the next one. Eg. Fibonacci numbers are 1,1,2,3,5,8,13,21,34,55,89,144 and so on. After the first 4 digits, if you divide the current number to the previous one you will get a ratio of 1.618, eg. 89:55=1.618. Or if you divide the current number to the next number you get the ratio of 0.618, eg 55:89=0.618.If you divide a fibonacci number by the number that precedes it two places you’ll get 2.618 accordingly. And if you divide a fibonacci number by a number 2 numbers following it, you’ll get the ratio of 0.382. Eg 13:34= 0.382.What do fibonacci numbers have to do with Elliot Wave theory? Simply put – the fibonacci ratios, according to Elliot Wave theory, are the primary factor of the extent of price and time movements in ANY market. Main relationships can be found between the waves in the similar direction – eg. The length of 3rd wave is influenced by the length of 1st wave.In Wave theory, deviations and abnormalities are not exceptions in Wave theory,

but rather rules.

6. Trend StrengthAroon –

A technical indicator, developed by Tushar Chande in 1995, used for identifying trends in an underlying security and the likelihood that the trends will reverse. It is made up of two lines: one line is called "Aroon up", which measures the strength of the uptrend, and the other line is called "Aroon down", which measures the downtrend. The indicator reports the time it is taking for the price to reach, from a starting point, the highest and lowest points over a given time period, each reported as a percentage of total time. Both the Aroon up and the Aroon down fluctuate between zero and 100, with values close to 100 indicating a

Shows whether a stock is trending or oscillating.

This is a technical indicator developed 10 years ago and can be used to find out if a stock is trending and how strong the trend is. It has also been designed to show the beginning of a new trend. It consists of two lines, upper  aroon   and lower aroon.It uses mainly just one parameter – time periods. Upper Aroon line is the amount percentage of time between the start of a time period and the point at which the highest price during that period occured. If a stock make a new low of the given time period, then the Upper Aroon will be 0. But if the stock closes higher than during the rest of the given time period, Upper Aroon will be +100. During every period without a new high, Upper Aroon moves down according to this little forumla – (1/number of periods)*100.The main formula for Upper Aroon is  [ [ (number of periods) - (number of periods since highest high during given time period) ] / (number of periods) ] x 100. Lower Aroon is calculated the same way only switch the highest high with a lowest low.Aroon cases

If Upper Aroon and Lower Aroon are moving lower in are close by to each other, it means that no strong trend is apparent.

If upper Aroon slightly goes below 50, it is an indication that the current uptrend has lost its momentum. Vice versa in case of Lower Aroon.

If value in case of either Aroon is above 70 then it indicates strong trend, direction depends on which Aroon is above 70. If Upper then uptrend, if lower then downtrend.

If value in case of either Aroon is below 30, it is an indication that strong

strong trend, and zero indicating a weak trend. The lower the Aroon up, the weaker the uptrend and the stronger the downtrend, and vice versa. The main assumption underlying this indicator is that a stock's price will close at record highs in an uptrend, and record lows in a downtrend. 

trend in the opposite direction is coming. So sign of possible reversal.Aroon oscillatorThis is generated by subtracting Lower Aroon from Upper Aroon. And the Aroon Oscillator has always a value between -100 and 100.If it’s above zero, it is an indication of an upcoming upwards trend. And if below zero, it’s an indication of upcoming downwards trend. And the bigger or smaller the value of the Aroon Oscillator is, the stronger the upcoming trend will be.

ADX – Average Directional Index Shows whether a stock is trending or OscillatingAroon Oscillator

7. Momentum MACD = Moving Average Convergence/Divergence

Use @ Trend

Formula : 26 EMA-12 EMA/100Compre with : 9 EMA

Trade with CROSS OVER

Difference of 2 EMAs that shows a stocks momentum and direction

Previously I have mentioned MACD indicator, now lets familiarize ourselves with MACD histogram. But before going there, remind yourself what MACD indicator was - „MACD is a variation of the price oscillator, it is calculated by taking the difference between twoexponentially smoothed moving averages of 12 and 26 days. The MACD line is the differences between the two averages – longer one is subtracted from the shorter one. Then a moving average of 9 periods is calculated of this differential and this is called the signal line. If the MACD line crosses above or below the signal line, buy or sell signal is generated.” However, the MACD indicator tends to follow price movements and does not help us predict them. To help us take advantage from the MACD indicator, MACD histogram has been developed. MACD histogram plots the distance between MACD and its signal line and this helps us find possible price changes in advance. Note though that MACD histogram still should be used in addition to other indicators and observation not all by itself. And like with  Parabolic SAR   you should use MACD only in trending markets.

 When following MACD histogram, you should go long when MACD Histogram goes up below 0 and go short when it goes down above zero. And like  Michael Jenkins   said – you should trade only in the direction of the trend

PPO = % of Price Oscillator A percentage based version of the MACD indicatorPVO = % of Volume Oscilaor PPO indicator applied to Valume instead of PriceROC = Rate of Change& Momentum Show the speed at which a stock’s price is changing

Support and Resistance

Support and Resistance prices are very important in stock market and in technical analysis.

Support - The support level is considered when the stock is falling down.

The support is the level at which the stock price gets support when the stock is falling down, and if the support breaks then that stock may witness further down movement. 

Resistance - The Resistance is taken into picture when stock price is moving up.

The resistance level is the price at which stock price get stoppage and if this Stoppage/resistance breaks then further upside is expected in that stock price.

Generally, stocks comes to support and resistance points and get constant before further movement and further movement either down side or upside depends on buyers expectation and other technical aspects.The breaking of support and resistance levels can also be triggered by fundamental changes, and that is up to investor expectations (fundamental changes like changes in profits, expansion, takeover, management etc).

Supply and demand

There is nothing strange about support and resistance levels. It is just supply and demand.

The supply is the number of shares that sellers are willing to supply (sell) at a given price. The demand is the number of shares that buyers are willing to buy (demand)at a given price. 

The investor expectations keeps on changing and so do the prices of stocks.A breakout above a resistance level is evidence of an upward move as more buyers (demand) are willing to buy at higher prices. Similarly, the failure of a support level indicates that more supply (seller) is available and ready to sell at lower levels.The Basic foundation of technical analysis tools is in the concept of supply and demand. So Charts provide us the best

view and analysis of these levels in action.

Traders Regret (unhappy) Level

After the break out of a support/resistance level, it is common for stock traders to think on the new price levels, whether this price is suitable or not which results in further upward or downward movement. So in other words we can call this as traders regret. So due to this the price may come back to support/resistance level.

In such scenarios one of the two things can happen. Either the stock prices will move back to their previous level OR investors/traders will accept the new price and the stock price will keep moving up in the direction of breakout

How to understand what is going to happen and when?

A breakout generally happens with the support of huge volumes.

If the price breaks through the support/resistance level with a large increase in volume and the traders regret period is on relatively low volume then this indicates that the new price up lift will keep ongoing. 

Conversely, if the breakout is on moderate volume and the traders regret period is on increased volume then this indicates that very few investor expectations have changed and hence return to the original price.Changes in price are the result of changes in investor expectations of the stocks future price.

Trends This type of a change is always based on News.

In the earlier chapter, we saw how support and resistance levels can be penetrated by a change in investor expectations which results in shifts of the supply/demand and hence change in stock price.

In this TRENDS section, we will see what is trend and how it influences stock prices. A trend represents a consistent change in prices. A trend is different from support/resistance levels. Trends represent change, whereas support/resistance levels represent barriers to change.

Upper Trend = A rising trend is defined as stock prices keep touching higher prices.

A rising trend can be thought of as a rising support level and the bulls are in controls which are pushing the stock prices higher and higher.

Falling trend =  It is defined as stock prices keep touching lower prices.

A falling trend can be thought of as a falling resistance level and bears are in controls which are pushing the stock prices lower and lower.

The break out takes place when investor’s expectations change in support with increase in volumes.

As in support/resistance, in trend lines also Volumes plays a major role in continuing the trend or in break out of the trend.

Indicators

Indicators are used to predict or analyze future changes in stock price.There are hundreds of indicators but in this section we will discussed the indicators which are most widely used and important ones.

MACD = Moving Average Convergence Divergence. Result : >0 (or) <0

This is one of the widely used indicator. This indicator is based on moving averages 

The MACD is calculated by subtracting a 26-day moving average (long term - BLUE) of a security's price from a 12-day moving average (short term-RED) of its price.

The result is that MACD is an indicator that goes above and below zero.

How to trade on MACD indicator?> RED line is SHORT TERM moving average > BLUE line is LONGTERM moving average.

When the

Short Term moving average crosses ABOVE> the long term moving - Upward direction, it means BULLISH and there may be rise in stock price. (See GREEN lines above)

Short Term moving average crosses BELOW< the long term moving - Downward direction, it means BEARISH and there may be Decrease in stock price. (See RED lines above)

RSI = Relative Strength Index (RSI) Result : >70(+BUY=bearish) <30(-SELL=bullish)

RSI is a Momentum Indicator and Most well known and popular

The main use of RSI is used to find whether the stock is overbought or oversold. 

The RSI indicator is plotted in a range of between 0 and 100.

If RSI is reached - above 70 considered that stock is overbought - BEARISH - below 30 considered that the stock is oversold – BULLISH

How to trade on RSI Indicator

Basically the RSI is a price-following indicator used to look for a divergence in which the stock is making a new high, but the RSI is failing to exceed its previous high.

This divergence is an indication of an impending reversal. When the RSI then turns down and starts falling.Basics of Technical analysis (3) What are Trend Lines

Basics of Technical analysis (4) Basic Chart PatternUpide & Downside Tasuki GapThere’s a gap between two candlestick with the same color (in the direction of the trend). The third candlestick opens within the second body and closes WITHIN the gap.Side by side white linesBullish Side by Side white lines continuation pattern consists of 3 white candlesticks and doesn’t require any confirmation. The second and third candlestick should have about equal open prices and both should have a gap between them and the first candlestick. The second and third candlesticks should also have similar heights. Bearish side by side white lines continueation pattern does need some sort of confirmation as well. In its shape it’s exactly the opposite to the bullish pattern but the first candlestick is filled while the second and third candlesticks are still empty. The gap in both cases should be in the direction of the trend.Rising Three Methods and Falling Three MethodsThis continuation pattern consists of 5 candlesticks. Not that both in bullish and bearish case the color (whether it’s filled or empty) of the THIRD body does not matter. The first candlestick in both cases should represent the existing trend and they are ideally followed by 3 small bodies ideally all of the opposite colour. All these 3 small bodies should be within the high-low range of the first candlesticks and should be rising or falling in the opposite direction of the trend. The fifth candlestick should close above the first candlestick (in case of bullish patternSeparating linesTwo candlesticks with opposite colors, exactly the opposite to Meeting Lines we have talked about before. The  first day   should be the OPPOSITE to the current trend.

Mat HoldMat Hold is a Bullish Continuation pattern. It is similar to the Rising Three Methods – the third candlestick again can be whether empty or filled and the 3 middles small bodies should be going in the opposite direction of the trend. However, while in case of Rising three methods the three small bodies had to be within the high-low range of the first candlestick then this is not the case anymore. The second body (first small one) doesn’t have to be within the first body (actually there should even have a gap between them) and the third body only touches the first body just a bit. The fourth body should have already a bigger part within the first day’s range. And the fifth body is empty again and should close above all the previous candlesticks. This pattern is considered a better signal than the Rising Three Method.Upside Gap Three Methods and Downside Gap Three MethodsThese Japanese Candlestick pattern names seem to be going only worse, at least that’s what it looks to me. Why couldn’t it just be something like...BONGO. Well, just to make it all easier to remember. I check the Japanese version as well in hopes that this is a short version of the name...but no, it’s „uwa banare sampoo hatsu oshi” and the opposite ...Ok, BULLISH BONGO or Upside Gap Three Methods...I prefer the first version, my own one, but I guess for the clarity of it all, lets stick to the original names and lets go on.This pattern consists of 3 candlesticks, first two being the colour and direction of the market trend but with a  gap between them and the third one should be of a opposite color that opens within the second candlestick’s body and closes within the fist candlestick’s body – meaning it also fills the gap.

On NeckThis is a Bearish continuation pattern with a very simple look. First long body is a filled one followed by upper-shadowless smaller white body that closes on the previous day’s low.

In NeckThis pattern looks exactly like the On Neck pattern with one difference – when On Neck’s second day closes on the previous day’s low then In Neck second day closes on the previous day’s Close (or slightly above the close, so barely within the body of the first day). Otherwise it’s the same. And this is also a Bearish continuation pattern.

ThrustingAnother similar Bearsish continuation pattern with a difference that it closes within the body of the  first day   but doesn’t really manage to get above the middle point of the first day’s body. Note that on the picture the second body should be just a bit lower.

Note that many of these patterns – both reversal and continuation patterns do require a confirmation. Even though if some of them don’t, it is still suggestable.

Evening Star :A bearish candlestick pattern consisting of three candles that have demonstrated the following characteristics: 

1. The first bar is a large white candlestick located within an uptrend. 2. The middle bar is a small-bodied candle (red or white) that closes above the first white bar. 3. The last bar is a large red candle that opens below the middle candle and closes near the center of the first bar's body. 

As shown by the chart below, this pattern is used by traders as an early indication that the uptrend is about to reverse. 

 Morning Star :A bullish candlestick pattern that consists of three candles that have demonstrated the following characteristics:

1. The first bar is a large red candlestick located within a defined downtrend.2. The second bar is a small-bodied candle (either red or white) that closes below the first red bar.3. The last bar is a large white candle that opens above the middle candle and closes near the center of the first bar's body.

As shown by the chart, this pattern is used by traders as an early indication that the downtrend is about to reverse.

Three White Soldiers Mean?A bullish candlestick pattern that is used to predict the reversal of the current downtrend. This pattern consists of three consecutive long-bodied candlesticks that have closed higher than the previous day, with each session's open occurring within the body of the previous candle. 

Candlestick Mean?A price chart that displays the high, low, open, and close for a security each day over a specified period of time.

Bearish Harami Mean?A trend indicated by a large candlestick followed by a much smaller candlestick whith a that body is located within the vertical range of the larger candle's body. Such a pattern is an indication that the previous upward trend is coming to an end.

Bullish Harami Mean?A candlestick chart pattern in which a large candlestick is followed by a smaller candlestick whose body is located within the vertical range of the larger body. In terms of candlestick colors, the bullish harami is a downtrend of negative-colored (black) candlesticks engulfing a small positive (white) candlestick, giving a sign of a reversal of the downward trend.

arami Cross Mean?A trend indicated by a large candlestick followed by a doji that is located within the top and bottom of the candlestick's body. This indicates that the previous trend is about to reverse.

Investopedia explains Harami CrossA Harami cross can be either bullish or bearish, depending on the previous trend. The appearance of a Harami Cross, rather than a smaller body, increases the likelihood that the trend will reverse. Shooting Star Mean?A type of candlestick formation that results when a security's price, at some point during the day, advances well above the opening price but closes lower than the opening price. 

Investopedia explains Shooting StarIn order for a candlestick to be considered a shooting star, the formation must be on an upward or bullish trend. Furthermore, the distance between the highest price for the day and the opening price must be more than twice as large as the shooting star's body. Finally, the distance between the lowest price for the day and the closing price must be very small or nonexistent.Red Candlestick Mean?The component of a candlestick chart that represents a downward movement in the underlying price. A red candlestick is composed of the period's high, low, opening and closing prices. If the closing price is lower than the day's opening price, then the body of the candle is red or black. 

Also known as a "black candlestick" or a "closed candlestick".Falling Three Methods Mean?A bearish candlestick pattern that is used to predict the continuation of the current downtrend. This pattern is formed when the candlesticks meet the following characteristics:

1. The first candle in the pattern is a long red candlestick within a defined downtrend.2. A series of ascending small-bodied candlesticks that trade within the range of the first candlestick.3. A long red candlestick creates a new low, which suggests that the sellers are back in control of the direction.Falling Three MethodsThe series of small-bodied candlesticks are regarded as a period of consolidation before the

downtrend is able to continue. This pattern is important, because it shows traders that buyers still do not have enough conviction to reverse the trend and it is used by some active traders as a signal to add to their short positions.Continuation Pattern Mean?A technical analysis pattern that suggests a trend is exhibiting a temporary diversion in behavior and will eventually continue on its existing trend.

The symmetrical triangle charts displayed below are both exhibiting a continuation pattern. Notice how the chart extends above (below) its existing pattern.

Continuation PatternContinuation patterns tend to be the most accurate when the trend has existed for around one to three months.

The most common types of continuation patterns are triangles, flags and wedges.

Basics of Technical analysis (5) Common Chart Pattern

Basics of Technical analysis (6) Type of Charts

Basics of Technical analysis (7) Basics of Candle SticksTo more above : http://www.metacafe.com/watch/yt-q-wbRPjacbU/candlestick_patterns_3_min_crash_lesson_18_bearish_harami/

Hammer Mean?A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.

Bullish Engulfing Pattern Mean?A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses or "engulfs" the previous day's candlestick. The shadows or tails of the small candlestick are short, which enables the body of the large candlestick to cover the entire candlestick from the previous day.

 Bearish Abandoned Baby Mean?A type of candlestick pattern that is used by traders to signal a reversal in the current uptrend. This pattern is formed by three distinct candlesticks that show the following characteristics:

1. The first bar is a large white candlestick located within a defined uptrend.

2. The second bar is a doji candle (open equal to the close) that gaps above the close of the first bar.

3. The last bar is a large red candle that opens below the second bar and is used to show the change in trader sentiment.

As you can see from the chart below, the pattern is a charting signal that the uptrend is about to reverse.

Doji Mean?A name for candlesticks that provide information on their own and also feature in a number of important patterns. Dojis form when a security's open and close are virtually equal. 

Dragonfly Doji Mean?A type of candlestick pattern that signals indecision among traders. The pattern is formed when the stock's opening and closing prices are equal and occur at the high of the day. The long lower shadow suggests that the forces of supply and demand are nearing a balance and that the direction of the trend may be nearing a major turning point. 

Basics of Technical analysis (8) How Candlestic Chart pattern can mark support levels

Basics of Technical analysis (9) How Candlestic chart patterns can mark resistence levels

Doubble or tripple tops or bottoms

Doubble top or bottom means that the current low or high fails to exceed the previous significant high or low for two times. When talking about the doubble tops or bottoms we need to remind ourselves two previously mentioned terms again – support and resistance.Resistance is is the price area where there are more sellers than buyers, the point which the price has hard time exceeding. Support is the price area where there are more buyers than sellers and the price is going up again. Pretty much the opposite to Resistance area. Often, the longer the timeline is between the two tops or bottoms the more significant trend reversal you can expect.How to confirm a doubble top? You can see doubble top when the previous big downswing bottom is exceeded after the visible doubble-top. Also pay attention to  volume   and if it confirms what you see on the price chart.

V top and bottomV top or bottom looks like V letter. V bottom is a low which is formed in the end of a decline (coming up now again). V top is formed by a significant advance followed by a big decline.Key reversalsKey reversals can mainly be of most use to (upcoming?) short term traders like me. Key reversal upday is a day where there is a lower intraday low than the previous day’s intraday low followed by a close Above the previous day’s close. Key reversal downday is a day where the intraday high is higher than the previous day’s high followed by a close Below the previous day’s close.Leigh Stevens likes to set some more restrictions to this and gives a bit different definitions.

Upside key reversal day is a day when there is a lower intraday low than the previous day’s intraday low (or two previous days) and where the close is above the high of the previous day (or two days).Downside key reversal day is a day when there is higher intraday high than the previous day’s (or two days) intraday high and close is below the previous day’s (or two days) intraday low.Head & Shoulders PatternNot to confuse with the shampoo – we are still talking about investing, trading, technical  analysis   which exists a lot due to human nature and psychology. So the next pattern we are looking at is Head & Shoulders pattern.H & S pattern is similar to the tripple top pattern as it also contains 3 tops followed by a downside trend reversal. Only with the difference that the middle top is higher than the shoulders (left and right top). And obviously, not to make the person with the head and shoulders a total freak, we want the shoulders to be at approximately on a same level. H & S bottom is again the opposite to the top, just imagine Keanu Reeves in Matrix to stand on the sealing, head below his feet.In H & S the line that is drawn to the bottom-peaks (support areas) of the shoulders is called the neckline. Note that sometimes your person on the picture can still become a freak with two about-the-same-height shoulders in one or another side. Quasimodo it is...but as long as you can profit from it, why not.Note that the pattern formations do not mean that the need to found from the  charts   as 100% matches. There can be different lower tops or bottoms near the head for example and etc but overally you must be able to separate the shape.With H & S the minimum reversal objective is to the range from neckline to the head. So once the price as fallen to the neckline then you can expect the price drop (in case of H & S top) as much as the difference between the head and neckline is.

Rounding tops and bottomsOn the  charts   you might find it when you check if you can form any half-circles of the tops or bottoms. If about a quarter of a full circle is completed you can expect increase in price ( or decrese accordingly ). Note that if at some point the circle is continuing to move in a straight manner then you can expect a reversal trend, often in case of uptrends it pretty much crashes now.Rectangle tops and bottomsRectangle pattern is formed by two horizontal lines that connect a number of highs and lows in about the same price range.Rectangle pattern is often like a  sideways movement   before the continuation of the primary trend. The rectangle is good in view of seeing the down and upswings above or below the rectangle. If the rectangle formed after a decline and the direction of the breakout is up, it is a rectangle bottom. And vice versa. If there has been two consecutive closes or 5-7% change above or below the rectangle then you should invest your money in the direction of the breakoutFalling and rising wedgesIt’s not very common that you see a wedge on the graph. However, if you do, it’s usually worth noticing. How to notice a wedge? In a rising wedge prices move continuously higher but the trendlines of higher highs and lower lows are narrowing in. In order for the trendlines to be considered there should be at least two upswing highs and downswing lows.In order to qualify as a reversal pattern there firstly has to be a previous trend to reverse. Wedges are usually long term pattern taking anywhere between couple of months to year to form.Lets come back to the higher highs and lower lows trendlines – after a while the advances from lower lows become shorter and you can’t call those advances rallies anymore. Once the support line is broken, be prepared for a major downwarns movement. However, before

buying be sure to wait until the support line has been broken in a convincing fashion.Note that it is really difficult to accurately recognize a wedge.Falling wedge is pretty much the opposite to rising wedge.Now I could also tell you about triangle tops and bottoms as well as many other different patterns. However, even though I can’t consider myself expert in technical analysis, far from that, I believe that these concepts of price trends etc are getting too far from the basics of price and volume. Thus I won’t be talking about them. I do agree that price and  volume   are very important in predicting potential price changes. I also agree that there are different patterns that might help us predict the trend or trend reversal on charts. However, we can’t go too far from the basics as the movement of prices is not just a movement of prices, it’s the all about the people causing the prices to change and triangles, pentagrams, whatever else are already unimportant here. Now you should have a basic understanding of patterns and if you think some different pattern types might work for you, you are now able to think up those patterns yourself.

Basics of Technical analysis (10) Candlestick Bullish – Reversal Patterns

Basics of Technical analysis (11) Candlestick Bearish - Reversal Patterns

Basics of Technical analysis (12) Gap down and Gap Up Analysis

Abandoned babyGosh, people have really put great names to the patterns, haven’t they? Okay, going on now. This pattern looks pretty much the same as Morning and Evening Doji Stars, but the Doji here must also have a gap from the shadows of the first and third body. So that the Doji sort of looks like .... an abandoned baby, what else can I say :DUpside Gap Two CrowsThis is only a bearish pattern. The first candlestick should be empty and there should be a gap both between first and second and also first and third candlestick. The third day should open higher and close lower than the second day. These two candlesticks should be both filled.

Meeting LinesThis means that two long candlesticks, of which one is empty and one is filled have the same closing price.Unique Three River BottomThis is one very unique pattern that doesn’t form too often but when it does, it’s a good signal. It’s a bullish pattern where the first body is long filled body, second body opens higher than the previous close, makes a new low compared to the  first day   and closes near the high of the day. Third day now opens lower than the second day’s body but higher than the second day’s low and closes below the close of the second day. Huh, getting confusing hehe? Nah, just keep reading.Three white soldiers & Three Black CrowsSee the image and you’ll understand why this pattern is called 3 white soldiers. Basically it’s 3 long candlesticks that close higher every day. Ideally the prices open in the middle of the previous day’s body. Note that the upper shadows shouldn’t be too long meaning that the day’s close should be quite close to the day’s high. NOTE THAT THIS PATTERN OCCURS IN A DOWNTREND. Three Black Crows is exactly the opposite pattern.Identical Three CrowsIt’s special case of the three black crows pattern – each day opens exactly or almost exactly at the previous day’s close. This pattern occurs in uptrend.

Advance BlockThis pattern stems from the three white soldiers. However, it is different in a way that this pattern now occurs in uptrend and it looks a bit different. All days need to close a bit higher than the previous day and open within the previous day’s body, the shadows on the second and third day should be quite long. Each body is smaller than the previous.DeliberationThis pattern again looks like the three white soldiers but the third soldier seems to be a bit crippled (smaller body or a star and with shorter shadows) and gapped compared to the second soldier. Note that the two first soldiers do not neccessarily need to be the same length, even though they both need to be long.

http://www.investopedia.com/categories/technicalanalysis.asp

terms of technical analysis

Above The MarketAbsolute Breadth Index - ABIAccumulation/DistributionAccumulative Swing Index - ASIActuarial AnalysisAdvance/Decline IndexAdvance/Decline Line - A/DAmplitudeAndrew's PitchforkArithmetic MeanArms Index - TRINAroon IndicatorAroon OscillatorAscending ChannelAscending TopsAscending TriangleAttribution AnalysisAutoregressiveAverage Directional Index - ADXAverage True Range - ATRAxBackspreadBarBar ChartBasingBearish Abandoned BabyBearish Belt HoldBearish Engulfing PatternBearish HaramiBell CurveBlow-Off TopBlowoffBollinger BandBox SizeBreadth IndicatorBreadth of Market TheoryBreakaway GapBreakdownBreakoutBreakout TraderBroadening FormationBuck The TrendBullish Abandoned BabyBullish Belt HoldBullish Engulfing PatternBullish HaramiBullish Homing PigeonBuy BreakBuy Stops AboveBuy WeaknessCandlestickChaikin OscillatorChande Momentum OscillatorChannelChartered Market Technician - CMTChartistChikou SpanChoppy MarketClimaxClose Location Value - CLVCommodity Channel Index - CCICommodity Selection Index - CSICommon GapConfirmationConfirmation On A ChartCongestionConsolidationContinuation PatternCoppock CurveCountCountermove

Countertrend StrategyCross-Sectional AnalysisCrossoverCumulative Volume Index - CVICup and HandleDaily ChartDark Cloud CoverDarvas Box TheoryDash To TrashDeath CrossDemarker IndicatorDepthDescending ChannelDescending TopsDescending TriangleDiamond Top FormationDirectional Movement Index - DMIDisparity IndexDisplaced Moving AverageDivergenceDojiDonchian ChannelsDouble BottomDouble TopDown VolumeDownside Tasuki GapDowntick VolumeDowntrendDragonfly DojiDrawdownDynamic Momentum IndexEase Of MovementElder-Ray IndexElliott Wave TheoryElvesEnvelopeEquivolumeEvening StarExhaustion GapExponential Moving Average - EMAFadeFailed BreakFakeoutFalling KnifeFalling Three MethodsFibonacci ArcFibonacci ChannelFibonacci ClustersFibonacci ExtensionsFibonacci FanFibonacci Numbers/LinesFibonacci RetracementFibonacci Time ZonesFifty Percent PrincipleFilterFilter RuleFlagFlat On A FailureFootprint ChartsForecastingFractalFuzzy LogicGann AnglesGapGartley PatternGolden CrossGravestone DojiGuppy Multiple Moving Average - GMMAHammerHanging ManHarami CrossHaurlan IndexHead And Shoulders PatternHeikin-Ashi TechniqueHindenburg Omen

HistogramHook ReversalHorizontal ChannelIchimoku Kinko HyoImpulse Wave PatternIndicatorInside DayIntraday Intensity IndexInverse Head And ShouldersInverse SaucerIsland ReversalJennifer Lopez - J.LoJoseph EffectKagi ChartKairi Relative IndexKeltner ChannelKicker PatternKijun-SenKlinger OscillatorLagging IndicatorLine ChartLinear Price ScaleLinearly Weighted Moving AverageLock In ProfitsLogarithmic Price ScaleLong-Legged DojiLow Volume PullbackMarket BreadthMarket IndicatorsMarket PsychologyMarket Risk PremiumMarket Technicians Association - MTAMarket versus Quote - MVQMarubozoMaterial AmountMatrix TradingMcClellan OscillatorMcClellan Summation IndexMcGinley Dynamic IndicatorMean ReversionMechanical InvestingMemory-Of-Price StrategyMini-LotMomentumMomentum InvestingMomo PlayMoney FlowMoney Flow Index - MFIMorning StarMoving Average - MAMoving Average ChartMoving Average Convergence Divergence - MACDMoving Average RibbonMultivariate ModelNecklineNegative Directional Indicator - -DINegative Volume Index - NVINoise TraderNoise Trader RiskOdd Lot TheoryOHLC ChartOn-Balance Volume - OBVOptimizationOutside ReversalOverboughtOversoldParabolic IndicatorPatternPattern Day TraderPennantPercentage Price Oscillator - PPOPiercing PatternPivotPivot PointPoint & Figure Chart

Polarized Fractal Efficiency - PFEPositive Directional Indicator - +DIPositive Volume Index - PVIPrice ActionPrice By Volume Chart - PBVPrice Rate Of Change - ROCProgram TradingProperty DividendPullbackPut-Call ParityPut-Call RatioQstick IndicatorQuantitative AnalysisRangeRange-Bound TradingRate Of ChangeReal BodyRectangleRed CandlestickRelative StrengthRelative Strength Index - RSIRelative Vigor Index - RVIRenko ChartResistance (Resistance Level)RetracementReversalReversal AmountRippleRising BottomRising Three MethodsRounding BottomRounding TopRunaway GapSalomon Brothers World Equity Index - SBWEISanku (Three Gaps) PatternSaucerSelling Into StrengthSenkou Span ASenkou Span BSentiment IndicatorSetup PriceShadowShooting StarShort InterestShort Interest RatioSideways MarketSideways TrendSignal LineSignaling ApproachSimple Moving Average - SMASkewnessSpecialist Short Sale RatioSpeculation IndexSpeed Resistance LinesSpinning TopSquare PositionStarSTARC BandsSTIXStochastic OscillatorStochRSIStock CycleStructural PivotSupport (Support Level)Sushi RollSwingSwing HighSwing LowSwing TradingSymmetrical TriangleTech BubbleTechnical AnalysisTechnical IndicatorTechnical RallyTechnically Strong Market

Technically Weak MarketTenkan-SenTestThree Black CrowsThree White SoldiersThrowbackThrusting LineTideTime Segmented Volume - TSVTirone LevelsTit For TatTopTop-Down AnalysisToraku IndexTrade Price ResponseTrade Volume Index - TVITrendTrend AnalysisTrend TradingTrendlineTri-StarTriangleTrigger LineTRINTriple BottomTriple TopTrue Strength Index - TSITurtle ChannelUlcer Index - UIUltimate OscillatorUniverse Of SecuritiesUp VolumeUpside Tasuki GapUpside/Downside RatioUptick VolumeVolatility RatioVolume Price Trend Indicator - VPTW-Shaped RecoveryWaveWeak ShortsWedgeWeekly ChartWeighted AlphaWhite CandlestickWilliams %RWolfe WaveZig Zag IndicatorZone Of ResistanceZone Of Support

TECHNICAL ANALYSIS OF WELL KNOWN STOCK CHART PATTERNS

Well Known Chart Patterns from http://www.trending123.com/patterns/index.html

We have 2 different types of primary trends. As mentioned, they are the Bullish trend reversaland the Bearish trend reversal.

Technical Analysis Glossary Learn More About Technical Analysis

Impulse waves up and Corrective waves down Learn More

Classic is a term used to refer to a group of patterns that typically have a longer-term horizon (greater than 12 days) and which have distinct price swings such that the price swings form distinctive patterns. The names of classic patterns often reflect the shape of the formation such as the Double Top, Double Bottom, Head and Shoulders Top, Ascending Triangle and so on.

Bullish:

Ascending Continuation Triangle Chart Pattern Bottom TriangleChart PatternContinuation Diamond (Bullish) Chart Pattern

Continuation Wedge (Bullish) Chart PatternCup with Handle Chart PatternDiamond Bottom Chart PatternDouble Bottom   Chart PatternFlag (Bullish) Chart PatternHead and Shoulders Bottom Chart PatternMegaphone Bottom Chart PatternPennant (Bullish) Chart PatternRounded Bottom Symmetrical Continuation Triangle (Bullish) Chart PatternTriple Bottom Chart PatternUpside Breakout Chart Pattern

Bearish:

Continuation Diamond (Bearish) Stock Chart Pattern Continuation Wedge (Bearish)   Stock Chart Pattern Descending Continuation Triangle Stock Chart Pattern Diamond Top Stock Chart Pattern Double Top Stock Chart Pattern Downside Breakout Stock Chart Pattern Flag (Bearish) Stock Chart Pattern Head and Shoulders Top Stock Chart Pattern Megaphone Top   Stock Chart Pattern Pennant (Bearish) Stock Chart Pattern Rounded Top Stock Chart Pattern Symmetrical Continuation Triangle (Bearish) Stock Chart Pattern Top Triangle Stock Chart Pattern Triple Top Stock Chart Pattern

Short-term Patterns

Short-term patterns are based on the shape and relationship of the candlestick(s) or price bar(s) representing one or multiple consecutive trading days. This includes patterns such as the Hanging Man and the Gap Up. The Technical Analysis is the confirmation that the pattern has formed in the price bar(s). These Technical Analysiss are useful for suggesting possible short-term price movement. They are also useful for supporting or refuting the possible price movement suggested by classic patterns. Short-term patterns are often considered as supplementary information.

Bullish:

Exhaustion Bar Chart Pattern Inside Bar Chart Pattern Key Reversal Bar Chart Pattern Two Bar Reversal Chart Pattern Engulfing Line Chart Patterns Island Bottom Chart Patterns

Bearish:

Engulfing Line Chart Patterns Island Top Chart Patterns

Other:

Gap Down Chart Patterns Gap Up Chart Patterns Gravestone Chart Patterns Hammer Chart Patterns Hanging Man Chart Patterns Inverted Hammer Chart Patterns Shooting Star Chart Patterns

Indicators

Indicators that are currently supported are based on moving average calculations.

Bullish or Bearish:

Double Moving Average Crossover   Chart Patterns Price Crosses Moving Average Chart Patterns Triple Moving Average Crossover Chart Patterns

Oscillators :Oscillators are based on mathematical formulas that incorporate historical or recent prices of the stock.

Bullish or Bearish:

Bollinger Bands Chart Patterns Commodity Channel Index Chart Patterns Fast Stochastic Chart Patterns 

KST (Short-term, Intermediate-term, Long-term) Chart Patterns MACD Chart Patterns Momentum Chart Patterns Relative Strength Index (RSI) Chart Patterns Slow Stochastic Chart Patterns Williams %R Chart Patterns

Reliability

Every chart pattern has a percentage of likelihood that it will occur. Chart Pattern Scan Time Frames   to view the probabilities for some well known patterns.