Technical Analysis

Technical Analysis in General

Technical Analysis: What It Really Is – A sort of general introduction to technical analysis, explaining its purpose, its place in an investment decision making process or strategy, and the hype and myths surrounding technical analysis.

Technical Indicators and Tools

Moving Averages – Everybody knows that moving averages exist in technical analysis. The concept is very simple, but the more you study them, the more complex they become. And there are so many different types of them – simple, exponential, adaptive, least squares, and on and on. No person can ever know all about moving averages.

Historical Volatility – Standard deviation of returns. Contrary to what some people may believe, it is not just for option traders.

Average True Range (ATR) – Another indicator of market volatility. Developed by technical analysis guru J. Welles Wilder Jr. in 1970’s.

Relative Strength Index (RSI) – Another indicator by J. Welles Wilder Jr., probably even better known than ATR. RSI is one of the so called oscillators, measuring primarily where the current price is relative to a recent period. However, it is calculated using a very different logic compared to other oscillators.

Momentum – A simple technical indicator measuring strength and speed (= momentum) of price change.

Breadth of the Market – Market breadth means how big part of the market (number of stocks) is participating in a particular market (e.g. stock index) move.

Technical Trading Styles

Trend Following (because the trend is your friend).