In the last article, we looked at indicators on price. This week we try to answer one of the hardest questions in technical analysis. When is a market trending or ranging? Understanding what camp you are currently in will be crucial for your trading success. Many of the technical tools you will come across work better in the different periods of price action. We look in particular at one indicator; the Directional Moving Indicator (DMI), which tries to answer this question. [Read more…]
In Part 9, we dug into the world of price patterns. This week, in Part 10 of our blog series, we explore a common method used in the world of maths and finance to find trends in data; that of moving averages. The moving average is a highly effective, multi-purpose tool that can enhance your technical analytical abilities.
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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.
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…]
Great interactive session last night teaching the Society of Technical Analysts (STA) Exam Prep session for the MSTA qualification at the London School of Economics. Covered all sorts of topics; the obvious exam hints and tips, how you write professional grade Technical Analysis reports, analysis in 3 time frames for the investor and trader, the basics: moving averages, trends, risk return, money management, Fibonacci, Ichimoku and much, much more. Good luck to all students sitting the exam in late April!
