Technical

Calculate and Interpret the Accumulation/Distribution Indicator

Accumulation/Distribution is a technical indicator that tracks momentum by measuring supply and demand to determine whether investors are in general “accumulating” or “distributing” (buying or selling) a particular asset. The accumulation/distribution indicator seeks to identify divergences between the price of the asset and the associated volume and can serve as a leading indicator for [...]

Calculate and Interpret the Close Location Value (CLV)

Close location value (CLV) is a measurement used in technical analysis to measure the closing price of an asset is relation to its high and low prices for the day. The CLV calculates within a range between +1 and -1, where a measure of +1 means that the closing price was equal to the [...]

Video Tutorial: The Basic Types of Stock Charts

A stock chart or “price chart” is a graphical illustration of stock prices plotted over a specified period of time. Stock charts are one of the primary tools of technical analysts who study past price behavior in order to predict future price direction. Stock charts can also offer important data to any fundamental [...]

Calculate and Interpret the Stochastic Oscillator

A Stochastic Oscillator, also known as a Stochastic Indicator is used to compare the close price of a security to its trading range over a defined period of time. Developed by George Lane in the 1950’s, the indicator is used to measure price momentum through the examination of a pre-determined high to low range [...]

Calculate and Interpret the Money Flow Index

The money flow index (MFI) is an oscillating indicator used to determine the strength of a current price trend through the price and volume analysis of any particular security. The money flow index provides a line that moves between 0 and 100; the closer it moves to 100, the more strength in the price [...]

The Primary Technical Indicators in Technical Analysis

In technical analysis, technical indicators are used to predict how well a stock will perform in the future given current market conditions. A technical indicator is often used in an effort to anticipate short-term price trends- upward or downward movements- of a particular stock or the market as a whole. The two categories of [...]

Calculate and Interpret Pivot Points

Pivot points are technical indicators used to predict the support and resistance levels and to offer cues for trade execution. Pivot point calculations are derived from previous day trading prices and can help traders spot key levels that, when broken, may indicate a breakout (prices passing through areas of support or resistance toward [...]

A Fibonacci Calculator for Retracement and Projections

In finance, Fibonacci analysis, or the “Golden Ratio”, forms the basis of a popular approach to technical analysis. The idea behind Fibonacci analysis is that the price movements of market-traded securities demonstrate relationships to Fibonacci numbers, which start with 0 and form a sequence by summing the previous two numbers in the series. [...]

The Basic Tenets of the Dow Theory

The Dow Theory is a theory of stock market analysis that relies on the performance of the Dow Jones Industrial Average (DJIA) and the Transportation averages. The theory was formulated by Charles H. Dow through a series of editorials in the Wall Street Journal over a two-year period from 1900–1902. [...]

Identifying Support and Resistance Levels in Technical Analysis

Support and resistance are concepts employed by technical analysts to identify and exploit stock price trends. The idea is that the price of a stock tends to stop and reverse direction at certain price levels. The support level is where the stock price is likely to break its fall and bounce back up. Resistance, [...]