Last week in Part 8, we looked at Trends, Support & Resistance. We take those ideas one step on this week, into the concept of patterns on price. Many think pattern analysis is created from a mystical land and disregard it without a second look! There can be strange names associated to the various patterns and this probably doesn’t help their legitimacy, but if you stop and think what the price is doing within these patterns, you can see the economics of supply and demand at work and this is why these patterns make sense and can be so effective. [Read more…]
Last week in Part 7, we looked at Market Breadth. We now start a chain of eight articles covering technical analysis directly carried out on price. We will be looking at patterns, support & resistance, trends, Fibonacci, pivots, moving averages, bands, indicators and Ichimoku. The first of the eight, looks at Trends, Support & Resistance. Understanding these principles will give you the necessary building blocks to understand price action and analysis and evolve your technical analysis learning. [Read more…]
Last week in Part 6, we looked at Equivolume. This week, we look at one of the more established and quite straight forward technical analytical approaches to gauging the sentiment of any given stock market: Market Breadth.
What is market breadth?
Market breadth is all about upward, downward and sideways movement and range, principally applied to stocks and their stock markets, to gain an understanding of whether the overall market is bullish, bearish or flat. The concept of market breadth is used to measure the ‘health’ of any given stock market. [Read more…]
Last week in Part 5, we looked at Point and Figure charts. This week, we look at one of the relatively newer style of charting methods that is yet to catch on in a more global sense: Equivolume. The rapid advancement in technical analysis and charting package technology over the last half of the 20th century, has allowed for many more innovative technical analysis solutions to come to the fore. One such method is that of Equivolume. [Read more…]
Last week in Part 4, we looked at candlestick charts. This week, we look at one of the oldest charting methods popularised in the West: Point and Figure charts. To some, Point and Figure charts look like a glorified game of noughts and crosses! To others they simply make no sense or serve no purpose. Unfortunately, the interest in Point and Figure charts is on the wane, which is a shame because if you dug a little deeper, they can be a highly effective charting approach that you could use for your trading and investing. They can offer flexibility and a different perspective on price action. [Read more…]