the study of stock charts – technical analysis

how can you look at a stock chart and analyze the trend ? besides fundamental analysis , technical analysis is also useful.

can you tell if it will move up ( if in an uptrend ) , sideways ( if in no trend ) or downwards ( if in a down trend ) ?

this is where the technical analysis comes in .. you study the following

  • candlesticks – the various types – reading the candlestick will help you decipher the move
  • candlestick patterns – a group of them form a pattern and analyze the trend
  • moving averages – simple and exponential – they tell you whether the trend is increasing or reducing in strength
  • ranges- bollinger bands
  • oscillators – macd histograms , stochastics , relative strength index ( RSI) – they give you an indicator of the movement even before the moving averages do .
  • overbought and oversold indicators
  • continuation patterns ( flag up , flag down )
  • reversal patterns ( head and shoulders , inverted head and shoulders , rounded bottom )

you will get to study all of these in our technical analysis course

for continuation patterns , you can predict the target price and the time it will take to get there

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