Support and Resistance
Support and Resistance is one of the most important and fundamental part of technical analysis: Support: Prices should rise after touching support. Resistance: Prices should
Basic Chart
Flag
he Flag pattern usually occurs after a significant up or down market move. After a strong move, prices usually need to rest. This resting period
Head and Shoulders
The Head and Shoulders chart pattern is a heavily used and quite profitable charting pattern, giving easily understood buy and sell signals. The chart of
Candlestick Pattern
Bullish Engulfing
The Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of two Candlesticks: Smaller Bearish
Bearish Engulfing
The Bearish Engulfing Candlestick Pattern is a bearish reversal pattern, usually occuring at the top of an uptrend. The pattern consists of two Candlesticks: Smaller Bullish
Doji
The Doji is a powerful Candlestick formation, signifying indecision between bulls and bears. A Doji is quite often found at the bottom and top of
Option
Bear Put Spread
A Bear Put Spread, also known as a put debit spread, is a bearish strategy involving two put option strike prices: Buy one at-the-money or out-of-the money put Sell one put further away
Bull Call Spread
A Bull Call Spread, also known as a call debit spread, is a bullish strategy involving two call option strike prices: Buy one at-the-money or out-of-the money call. Sell one call further away
Put Option
Buying put options is a bearish strategy using leverage and is a risk-defined alternative to shorting stock. An illustration of the thought process of buying
Technical Analysis
Relative Strength Index (RSI)
One of the most popular technical analysis indicators, the Relative Strength Index (RSI) is an oscillator that measures current price strength in relation to previous
Stochastic RSI
The Stochastic RSI combines two very popular technical analysis indicators, Stochastics and the Relative Strength Index (RSI). Whereas Stochastics and RSI are based off of price, Stochastic RSI derives
MACD
The MACD indicator is one of the most popular technical analysis tools. There are three main components of the MACD shown in the picture below: