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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11
votes
3answers
42k views

What does “more buyers than sellers” in technical analysis of stocks actually mean?

I often hear/read technical analysts looking at volume and price action on a chart and claiming that there are "more buyers than sellers" or vice versa. Since every trade requires a buyer and a ...
9
votes
2answers
2k views

Effectiveness of technical analysis techniques: Any supporting studies? [closed]

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 ...
106
votes
12answers
92k views

In the stock market, why is the “open” price value never the same as previous day's “close”?

This is something that is mind-boggling to me, and it is particularly obvious in candlestick graphs: Why is the open value never the same as the previous day's close value? This is something I just ...
6
votes
2answers
552 views

Technical Analysis not working

After reading a book and a million articles on the internet, I now know everything there's to know about the most popular technical analysis indicators, at least their theoretical use. However, when ...
13
votes
4answers
1k 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 ...
7
votes
7answers
14k 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?
10
votes
2answers
1k 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 ...
0
votes
1answer
157 views

RSI formula doubts

HI'm trying to understand how RSI calculation works. I've found here a nice and easy method and I recently also found this article, which states: "RSI like many other oscillators is defaulted to a 14 ...
54
votes
9answers
16k views

Is it true that, “just ten trading days represent 63 per cent of the returns of the past 50 years”?

I have fallen down a Wikipedia rabbit hole and landed on the page titled Seven States of Randomness. I can't explain in a single sentence what it is talking about, but my question is about an odd ...
8
votes
2answers
1k 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 ...
2
votes
2answers
2k views

What are some simple techniques used for Timing the Stock Market over the long term?

What are some simple techniques used for Timing the Stock Market over the long term to beat average market returns? By long term I mean 5 years and longer. It may include investing directly into ...
4
votes
4answers
492 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 ...
5
votes
1answer
170 views

What are some good software packages for Technical Analysis? [closed]

What are software packages that allow me to perform technical analysis on candlestick charts? Ideally the software will update with realtime stock data. I'm mostly using Windows but am also curious ...
2
votes
1answer
1k 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 ...
4
votes
2answers
557 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 ...
3
votes
1answer
3k 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 ...
-1
votes
1answer
272 views

How does the bloomberg website chart calculate the MACD?

I am looking at SeekingAlpha and Bloomberg. On SeekingAlpha, I have added the MACD indicator, and get the following chart for 1 Month data: On the Bloomberg website, I change the time length to 1-...