Friday, February 15, 2008

Technical analysis & day trading


Technical analysis is a study of price & volume action of stocks or markets, by using different kinds of analytical tools (indicators) or simply drawing a trend line or support and resistance level. Trader use charts as a basic element to analyze securities. Day traders rely on technical analysis rather then fundamental analysis. As I became more interested in day trading, I found out that it was fascinating to predict the next move of a stock .The only way to predict the future move is to analyze their past move.

Most popular technical indicators:

1. Moving average (MA)
2. Moving average convergence divergence ( MACD)
3. Relitive strength index (RSI)
4. Stochastics
5. Bollinger bands
6. Commodity channel index (CCI)
7. Money flow
8. Parabolic SAR
9. Price Oscillator
10. Momentum
11. Directional movement index (DMI)
12. Price oscillator
13. Average true range
14. Donchian channel
15. Accumulation/distribution

1 comment:

Nina Athena said...

Thank you for sharing such valuable information and knowledge. This can be great and helpful insights for us. I would love to see more updates from you in the future.

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