Technical Analysis A to Z

All trend traders are constantly looking for that next profitable market or stock that is in a defined uptrend or downtrend. For those traders, the ADX Indicator (along with the Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI)) is a great tool that can be used to measure and quantify the direction as well as the [...]

Technical Indicators like the MACD are extremely valuable to stock market technicians looking to gain any type of advantage when it comes to identifying high probability buy and sell signals. Discover the power that the MACD Indicator can give you by understanding exactly what this oscillator is, how it is calculated, and how you can [...]

On balance volume (OBV) is a technical analysis indicator that tracks trading volume to predict changes in price momentum. The OBV was defined by Joseph Granville in 1963, and it builds on basic economic theories of supply and demand. In economics, when demand for an item exceeds supply, the price of that item will rise. [...]

The Commodity Channel Index, or CCI, is a momentum indicator used to identify strong trends, price cycles and overbought/oversold conditions.It was first introduced in 1980 by Donald Lambert. For interested parties, a complete explanation of the formula can be found here. For everyone not into algebra, here’s the basics: The Commodity Channel Index measures a security’s deviation [...]

In 1978, J. Welles Wilder invented the Relative Strength Index (RSI) to measure and to derive calculations from the normal fluctuations of financial markets. He published and popularized his findings in the June 1978 edition of Commodities, now known as Future magazine, and in his book of the same year, New Concepts in Technical Trading [...]

The Stochastic Oscillator is used to measure price momentum and indicate overbought or oversold conditions on a scale of zero to 100. The oscillator is based on the idea that as price decreases, the daily closes tend to accumulate near the lows of the daily range. As price increases, the daily closes tend to accumulate [...]

Bollinger Bands are a technical indicator used for evaluating changing prices of stock market investments.  It is based on the notion that every stock has a natural variation in day-to-day trading but that when something significant happens, the stock will trade outside the normal range of variation.  The band suggest an upper and lower limit [...]

Using an Oscillator Indicator is a very valuable tool for anyone that applies Technical Analysis to their trading. These indicators are primarily used to indicate extremes in the market.  Once you can use these indicators to identify these extremes, you can apply this information along with your technical analysis to help identify entry and exits [...]

Whether you are just getting started into Technical Analysis, Trending Indicators, or are already an advanced technical trader you should be familiar this quote: “The TREND is your FRIEND” Using Trending Indicators to identify and follow a trend can be a very profitable trading plan, especially when markets trend in the same direction for a [...]