Technical analysis

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Patterns

Charts

Cycles

Channels

Candlestick forms

Indicators

Gaps

Trends

The market prices of shares are usually following trends. One can distinguish between short-, medium-, and long-term trends. Long-term trends are shaped by market expectations, while the short-term ones are shaped by current news and events. Trends are illustrated on charts.

There are three main types of trends:

  • Upward trend line (ascending trend)
  • Downward trend line (descending trend)
  • Horizontal trend line

In case of an upward trend, the support line is drawn by connecting the throughs (minimum points). Connecting the peaks (maximum points) gives us the resistance line. Whereas, in case of a downward trend it is the opposite: the support line is drawn by connecting the peaks and the resistance line is drawn by connecting the minimum points. A trend is upward, if the peaks are getting higher and higher. A trend is declining if the throughs are getting lower over time. When the market price goes outside the channel (resistance and support lines) and stays outside by the end of the day, it is called breakout. If the breakthrough does not exceed 2%, it is called a "dead" breakout.

Upward trend line (ascending trend)

Upward trend line (ascending trend)

Upward trend line (ascending trend)

  • drawn by connecting successive minimums,
  • the more minimum points there are, the stronger the trend,
  • also called the support line.

Downward trend line (descending trend)

Downward trend line (descending trend)

Downward trend line (descending trend)

  • drawn by connecting successive minimums,
  • the more minimum points there are, the stronger the trend,
  • also called the support line.

Horizontal trend line

Horizontal trend

Horizontal trend

  • drawn by connecting successive minimums or maximums,
  • the more minimums or maximums points there are, the stronger the trend,
  • called support line if the market price is above the trendline and called resistance line if the price is below the trendline.

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Trading Guides

Indicators

25 indicators. Find the indicators matching Your strategy and learn their trading signals through examples!

Candlestick patterns

88 candlestick patterns. Increase Your profit by recognising candlestick patterns and analysing the market with their help.

Chart patterns

31 chart patterns. Recognise triangles and breakouts, calculate the target prices defined by them.

Option strategies

49 option strategies. Apply the strategies that best suit your purposes and learn how to calculate their potential profit and risk through examples.

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Everything You need to know about stock and option trading.

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