# Questions tagged [technical-analysis]

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.

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### How to set up an ATH chart in Tradingview

I watched a YouTube video where the presenter displayed a chart of Nvidia's all-time high (ATH) levels. The chart was configured to depict the stock's historical ATH levels as the maximum points, this ...
84 views

### Calculating technical indicators on a shorter or longer price series: does it generate the same curve?

I was wondering if when calculating technical analysis indicators having more data points makes any difference. Let's take as an example a 9 periods exponential moving average (EMA). To calculate it ...
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1 vote
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### What exactly is wrong with treating two conceptually similar trading indicators as independent pieces of evidence?

Suppose you come across a financial trading system which starts by checking a security's 200-Period Moving Average, either by itself or in conjunction with the security's price data, perhaps signaling ...
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### How to plot bollinger bands on a candle chart?

I'm studying some indicators and I'm struggling with how these tools plot the bollinger bands upper and lower bands. Every source that I've found says the bollinger bands are calculated as follows: ...
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1 vote
455 views

### Can CAGR be calculated for a time periods less than 1 year?

I am using the CAGR formula to calculate CAGR of my full portfolio. But there are some stocks which were bought 6 months ago. cagr = ((end_value / buy_value) ** (1 / n)) - 1 for eg if a stock was \$50 ...
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### Stock market graph question

This is from the technical analysis book I am reading, please help understanding this chart. I cant get how they created this chart and cant understand it. Quote from the book for the chart Figure ...
567 views

### How to Interpret the Widely Fluctuating Gold-Silver Ratio

Historically speaking (prior to WWI), the gold-silver ratio (price of an ounce of gold to an ounce of silver) often fluctuated between 10 and 15. I have read that in ancient Egypt, the ratio was once ...
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60 views

### What the author meant by first test of a new high should fail and first test of new low should succeed?

The author says the first test of a new high should fail. The first test of a new low should succeed. Watch for a breakout or breakdown the next time around. I did not understand what he meant by fail ...
1 vote
161 views

### How is the Simple Moving Average (SMA) calculated if some days have no trades?

I want to calculate the 10-day SMA of a stock. However, there are some trading days when no trades took place for the stock (i.e. volume is zero). For the days that have zero volume, what is the stock ...
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### What is a 5 handle when talking about increases/decreases in price?

I keep hearing people say "its a 5 handle" or 3 handle, various numbers like that. I'm not sure if this is related to the cup with handle pattern or something else. And if it is related to ...
1 vote
1k views

### What could be the difference between "volume" and "number of trades" in stock market analysis software?

My broker software reports 2 different numbers for "volume" and "number of trades". However, if I look on investopedia it lists "volume" to be the number of trades. The ...
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### The listing price of a stock

I was creating python model of hypothetical stock with market cap MC having S outstanding shares whose current price is CP. the intention was to create a chart for technical analysis and understand ...
176 views

### What is a price gap exactly? candle shadows does matter in this pattern or not?

According to Investopedia, gaps are defined as: Spaces on a chart that emerge when the price of the financial instrument significantly changes with little or no trading in-between. Considering this ...
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### In technical analysis why higher volumes are considered better for a price action [closed]

I have read everywhere that, if a chart pattern gets broken by a higher volume of trades then its considered better than the same pattern broken with lower number of trades. But I have never seen a ...
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640 views

### Support for 50 & 100 Moving Averages

This is the S&P chart as of yesterday 1/7/2022. An analyst said that the S&P had reached its 50-day low and if it does not go higher, it will reach its 100-day low. My questions are: Who is ...
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503 views

### How can one do their own algorithmic trading (does Robinhood and/or Webull provide a REST API)?

In order to do algorithmic trading one needs more than just access to a commercial app like Robinhood or Webull. Their tools give individuals access to a range of tools, but all the execution of ...
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### Price moving patterns change over time? [closed]

As I do technical analysis on stocks, forex pairs, cryptos, see its chart and price data, I came to think of that if some major technical analysis indicators such as RSI were once effective in the ...
59 views

### How to calculate actual dollar values from the fibonacci extension on Trading View

Can someone tell me how to calculate these fibonacci extension values? For example, this extension is from 300.50 to 89.29. Now, when I look at the .786 or .618 values, I figured you just multiply ....
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150 views

I am using ATR (and \$EVZ) to estimate recent volatility, in order to position my stop loss. What period should I use for ATR? I am aware many use 14...but I am wondering if there is a justification ...
263 views

### How to Calculate Return of Multi Positional Trading Strategy

i have a trading strategy that buy multiple stocks in same time and sell another time. I want to calculate return of this strategy. Below table shows my positions that opened and closed. From above to ...
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### What does breakout to the upside mean?

This is the chart of Tesla today. In this article, the analyst says Tesla stock has a resistance at 780 and there will be breakout if the stock breaks that level. What does breakout mean? What ...
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787 views

### Why are weekends ignored when calculating moving averages?

Suppose we are calculating a 5-day simple moving average (SMA) of a stock's closing price: If it is now the end of the trading day on Friday, we can calculate the SMA using the closing price on ...
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481 views

### What is the reason behind Fibonacci retracement in stock markets?

I read in technical analysis that stocks follow Fibonacci retracement. But what’s is the crux reason behind this that golden ratio plays an important role in the stock market while buying and selling ...
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### Does the calculation of moving averages include the current price?

Suppose I have the historical closing prices of a stock, and the current real-time price. I want to calculate a simple moving average (SMA). Historical prices: Day Closing price 1 \$1.10 2 \$1.20 3 \$...
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### Many questions about the Exponential Moving Average

According to the web, the formula for calculating the EMA for an N-period is: (Price today)*(2/(1+N))+(EMA yesterday)(1-2/(1+N)) What exactly is "price today"? Is it the exact current price ...
302 views

### Calculating EMA from minute bars

This seems like a rather ignorant question but some searching has proven fruitless. When looking at any EMA lines in a small timeframe (1-minute or 5-minute bars), I noticed the EMA changes across ...
167 views

### When viewing OHLC candle datasets, which value is used to calculate moving averages?

Given a candle dataset - say a CSV file with columns (Open, High, Low, Close, Volume) I want to calculate things like the 100/200 day moving average and other typical metrics. How to actually do a ...
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### Calculate stock price range using standard deviation

New to stock investing hence reading up a few tutorial to better understand stocks/stock market. Came across a chapter that says, "Understanding risk with the stock market" and it says that ...
738 views

### Help needed understanding candlestick pattern formula

I have a list of formulas for calculating candlestick patterns. There are a few expressions that I do not know the meaning of. Here is an example: Bullish Engulfing O1 > C1 AND 10 * (C - O) >= 7 ...
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251 views

### How to find a stock metric that reflects the actual prices at which the stock traded hands?

I am searching for a stock metric that reflects the actual prices at which a stock trades hands. • The price of a stock at a daily close is the last price at which a stock trades hands, which does not ...
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47 views

### Drawing trendlines of a stock

I am newbie to the stock market, just experimenting for now. Could you please check whether or not the trend lines I have drawn are correct?
62 views

### 52 week Momentum strategy from basics with tanmay and prateek youtube course [closed]

If anyone has watch the youtube online course basics of trading with tanmay and prateek, please help with following. The logic behind selecting the stocks? As far as I understand is: "We have to ...
68 views

### Reading candlesticks and identifying trends

Firstly, I am pretty new to investing and have only been doing it for a few months now. I want to ask, as a long-term investor into safe instruments like ETFs, what are some of the best identifying ...
1 vote
56 views

### SMA2 High Low Strategy

I wonder if there is any strategy to buy and sell stocks based on the SMA (Low) and SMA (High) of two days. I have noticed that the greater range price remains between the low of the previous day and ...
60 views

### How does the Average True Range indicator get calculated?

I'm having trouble understanding the ATR but have one big question about it. In this graph here, You can see the ATR for a 14-day period is ~\$2.78 as shown by the line graph. I just don't understand ...
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### Are log-scale charts more representative of long-term asset performance than regular y-axis charts?

To most accurately assess the long-term performance of an asset, does it make more sense to look at it with a logarithmic y-axis? I understand that this type of y-axis makes percentage movements ...
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202 views

### What is the point of placing your stop-loss at/around the next fibonacci level when using fibonacci retracement?

I'm a little confused as to how this works. The graph above is examining a downward retracement in a long, upward trend. The recommended point to place your stop loss is apparently at the level below ...
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### What is the implication when a MACD is far below its 9-period signal line versus when it is far above it?

What does it mean for the difference between a 12-period MA and a 26-period MA to be lower or higher than a 9-period MA? I also don't understand how the 9-period signal line can be plotted next to the ...
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161 views

### How is the MACD positive in this example when the 12-day MA is below the 26-day MA?

I learned that the MACD for an asset will be negative when the 12-day moving average is below the 26-day moving average, so I was confused when I looked at the price of bitcoin a few months ago with ...
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217 views

### What does this blip on a chart indicate?

I noticed this on a chart I'm looking at. I'm curious what if anything it might indicate. Could be as simple as someone mis-clicking, or perhaps a new trader misunderstanding what they're doing? We'...
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126 views

### What is the meaning of large and small gaps in any given MACD?

I've heard that when the two lines of a MACD are very close together, the price is extremely volatile while when they are far apart the price is not very volatile. To me it makes sense that if they ...
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### How can I build a moving average for individual trades?

I am familiar with building moving averages (whether SMA or EMA) from candle/OHLC data or indeed from a ticker which reports the price at a fixed interval. But I would like to extend this to a raw ...
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### Searching for stock risk measure where a value of around 15 is fine

I am reading through some stock analysis documents (unfortunately they don't seem to be available online). They calculate something that they call "risk". For Amazon stocks its around 18 (...
162 views

### Is flipping a coin with good risk management profitable? [closed]

I researched many trading strategies online, and in books, and most of the strategies said that a good risk management system was possibly more important than the strategy itself. I heard phrases like ...
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### When triangles work in technical analysis?

I encountered so many triangles that didn't work as expected. Is there anything to figure out when it's more likely to work or not?
2k views

### Can fundamental analysis be applied to market indexes as if they were single stocks/bonds?

According to Benjamin Graham, in order to avoid speculation, fundamental analysis must be applied in order to analyse the viability of a stock/bond before purchasing it. Is this criteria valid for a ...
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122 views

### Show divergence in its on plot, without MACD or other momentum oscillators

I would like to identify divergence, but not through comparing price action with an oscillator, e.g. the MACD or other momentum oscillators (as normally done), but in its own plot. How to do this? Any ...
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### Three black crows followed by a three inside up in an uptrend [closed]

I am new to stock trading and is interested in reading trends. Recently, I looked at ANTM with a three black crows trend followed by a three inside up trend on an uptrend. From what I have learned, ...
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