In finance, technical analysis is an analysis methodology for analyzing and forecasting the direction of prices through the study of past market data, primarily price and volume.
Technical analysis is the art and science of reading charts to quantify the trend or trading range price is in, the path of least resistance for the next directional move, the area of value on the chart, and create good risk/reward ratios by defining key technical levels.
Technical analysis can be both an art or a science based on how you use it. It is very easy to become too rigid in its practice believing it can become too flexible whatever you want to see.
Moving Averages Indicator 10 Reasons moving averages work as trading tools. Moving averages have a place in any trader’s or investor’s strategy. They are my favorite filter for price action. Moving Averages are Great Trading Tools I like moving average signals for their power and simplicity in my trading and here is why: Here are … Read more
Technical indicators give traders ways to quantify and measure price action. A technical indicator can show the direction of the current trend, volatility, momentum, and whether a market is overbought or oversold.
The Ichimoku Cloud is a technical indicator that tries to quantify support and resistance, it identifies the direction of the trend, and measures the momentum to create potential trading signals.
In technical analysis a divergence pattern is a signal on a chart that occurs when the price of an asset is moving differently than a technical indicator. A divergence can show that the chart is becoming bullish and the chart may be beginning an upswing or uptrend in price action
In technical analysis the triple top chart pattern can be a possible signal for a reversal lower in price.
Chart Facts: Bear Pennant Example Here is an example of a bear pennant that formed on the Bitcoin chart during a downtrend in price. After the clear downtrend in the first half of January a bear pennant formed in the second half of January before the downtrend continued in the first week of February. Price … Read more
The Head and Shoulders Chart Pattern is one of the most popular and bearish patterns in technical analysis. It defines three attempts to make highs and then trend but fail, it precedes many major corrections and bear markets. Chart Facts: The below $GS chart shows a Head and Shoulders pattern that was very fast to … Read more
Rounding top pattern typically appears at the end of extended upward trends and may signify a significant reversal in long-term price movements. Traders often observe this formation after a prolonged period of rising prices, which leads to increased bullish sentiment. However, as the pattern develops, it indicates that this bullish momentum is waning. The pattern … Read more