Tagged Questions

For questions relating to technical analysis, the practice of evaluating securities by analyzing statistics and patterns generated by market activity, such as past prices and volume.

learn more… | top users | synonyms

1
vote
4answers
115 views

How might trading volume affect future share price?

I want to know how to determine the coming ups and downs in share price using the trading volume that can help me analysis for coming events. Is there any reasonable technique for this purpose? For ...
3
votes
3answers
196 views

How is the Efficient Frontier drawn?

I know efficient frontier is the collection of expected return on a portfolio and the level of risk(e.g. standard deviation). What I don't understand is that is the efficient frontier really drawn ...
1
vote
2answers
129 views

Using Fibonacci Extensions to set profit targets?

When trading stocks what are the advantages of using Fibonacci Extensions to set profit targets? What Fibonacci Extension level is most appropriate for setting a profit target, or can it be better to ...
4
votes
4answers
213 views

Chart analysis: What does this mean: 200 period moving average?

In a chart analysis I read the sentence the red 200 period moving average can be seen rising from the lower left of the chart. I know what a moving average is, but what is meant by the 200 period? Is ...
-1
votes
1answer
116 views

Do technical indicators actually work while analyzing stocks? [duplicate]

I have tried various indicators such as SMA's, EMA's, stochastics, Bollinger bands etc, while trying to analyze a stock, but they often are only as effective as making a wild guess on picking a stock. ...
2
votes
1answer
95 views

What is meant by a market that is technically strong

What is meant by a technically strong stock or a technically strong market? I understand what a fundamentally strong stock is, but what is a technically strong stock/ market? Does it mean a stock ...
3
votes
3answers
156 views

Technical Analysis: the concepts of overbought / oversold don't make sense

Some technical indicators (e.g. Williams %R) indicate whether the market is overbought or oversold. But this doesn't make sense. Let me explain. Every time a stock or commodity is bought, it is ...
1
vote
1answer
101 views

What is this kind of price graph called, and what is it useful for?

What is this kind of graph called? How do I interpret it? What is it useful for? I can't even tell what the axes mean.
0
votes
1answer
133 views

Why does heavy volume indicate the strength of a trend?

When a reversal occurs on a chart on a heavy volume, it is supposed to signal the beginning of a strong reverse trend. For example, if a security was trending upwards and then it moves down on heavy ...
3
votes
1answer
659 views

Rationale behind using 12, 26 and 9 to calculate MACD

The standard setting for the MACD are 12, 26 and 9. Is there a rationale why these seemingly arbitrary numbers are considered a standard? My other question is that why is 26 considered to be the ...
0
votes
1answer
131 views

Understanding signal line crossover vs zero line crossover in MACD

In this Wikipedia article here They mention: Zero crossovers provide evidence of a change in the direction of a trend but less confirmation of its momentum than a signal line crossover. If ...
-1
votes
1answer
231 views

Gauge the strength of the resistance level of a stock just using EMA

Say I calculate the 200-day EMA of a stock to be $25. The stock currently trades at $22. I see from the historical price action that it has touched $25 and failed to break it two times in the past 4 ...
1
vote
3answers
532 views

Why do moving average acts as support and resistance?

What is the reason that a particular moving average can act as a good indicator of support and resistance for a particular stock? Moving average is just an avg of closing prices over 30 days or 50 ...
5
votes
3answers
3k views

Is candlestick charting an effective trading tool in timing the markets?

In the world of technical analysis, is candlestick charting an effective trading tool in timing the markets? If used correctly, how accurate can they be in picking turning points in the market?
2
votes
1answer
69 views

Are most financial needs analyses created equal?

I'm currently talking to a representative for a company that as part of the service they offer does a financial needs analysis (FNA). A quick online search for "financial needs analysis" turns up a ...
5
votes
2answers
138 views

Does it make sense to talk about an ETF or index in terms of technical indicators?

For example, a story today talked about SPY approaching support levels. Given that the price of the ETF is essentially determined by the price of its constituents, does this even make sense? Do ...
3
votes
1answer
273 views

Does technical analysis work on penny stocks?

Does technical analysis work on penny stocks? If yes, and we're talking about stocks that trade under $3, is there a point at which it stops being effective? If yes, does technical analysis work the ...
1
vote
2answers
128 views

What are the fundamental levels that makes a Stock Ideal? (either to sell or buy)

During the analysis of a stock, you analyze a few technical, fundamentals as well as environmental points. For example the PE, or Volume, etc. for technical points and News and rumors for ...
-1
votes
1answer
123 views

DJIA, NASDAQ, S&P 500 index day's estimating volume

Is there any website can find these info? My broker is IB, but I can't find these info in Trader Workstation. Thanks.
6
votes
1answer
367 views

What are the primary investment strategies people use and why do they use them?

When I first started studying investing the literature I was reading pointed me towards something called technical analysis. As I started asking questions about this trying to determine exactly what ...
2
votes
3answers
171 views

How do I interpret this analysis from Second Opinion?

On Second Opinion analysis for a stock I read the following: OPINION: LONG RECOMMENDATION: If you are long, hold current position. Do not initiate new position. Stock is Not a Short Sell Candidate ...
4
votes
2answers
160 views

What are support and resistance of a stock?

Checking Second Opinion report for a stock I saw the following: Look for Support at 14.81 Watch for resistance at 15.37 Could anyone please explain what this means?
4
votes
2answers
177 views

Can the shorting of S&P futures negatively affect the underlying index and constituent stocks?

I hear people on financial shows talk all the time about index futures like SPY and QQQQ affecting the actual index. Can shorting these futures (in huge quantities obviously) cause the underlying ...
10
votes
4answers
562 views

How to learn about doing technical analysis? Any suggested programs or tools that teach it?

I've been going through the OIC Education Courses recommended by @jaydles in another question about learning options. I'm about halfway through, I've learned a lot about how the stock market works ...
3
votes
4answers
298 views

Standard Deviation with Asset Prices?

I am looking for risk measures such as standard deviation for asset prices such as stock prices and index fund prices. It would be a trivial task if I had the data but since I do not have the data I ...
3
votes
4answers
648 views

What are some (beginner) introductory books about Technical Analysis of Stocks?

I read Technical Analysis for Dummies...and am looking for a more detailed insight into the topic.
8
votes
2answers
760 views

How to Explain “efficient frontier” to child?

I have found this challenge almost impossible because I don't want to use too technical jargon, just nice pictures, gestures and analogies to everyday life. So I created this pathological example with ...
6
votes
2answers
471 views

Effectiveness of technical analysis techniques: Any supporting studies?

Do you find Techical Analysis to be an effective way of increasing the returns on your investments? This can be either by itself, or in combination with other indicators. If so, what techniques do ...