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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.

For a detailed introduction to technical analysis, see Investopedia's Introduction to technical analysis.

205 questions
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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 don't get: on all the candlestick graphs, you can…
Stocknoob
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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 quote at the end of the History section (with my…
KDecker
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Is this the proof that Technical Analysis does not work?

If Technical Analysis is working, why is not possible to program a bot to do it automatically? The bot will be much faster than any human, will not make any numeric error, will not fail due emotions, will work 24/7 and also could analyse thousands…
Enrique
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Paradox - When to buy & when to sell a share?

Warren Buffett says buy when everyone is selling and sell when everyone is buying. Taking into consideration the support and resistance levels, everyone is selling near the resistance level and everyone is buying near the support levels. If we…
6nagi9
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In what way does technical analysis involve astrology and reading tea leaves?

I am considering whether or not I should learn technical analysis after fundamental analysis. When I searched for "technical analysis" on internet forums to gauge whether or not it is worthwhile for me to learn, I noticed people saying that…
user102086
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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 and I've excited about taking this to the next…
Shane
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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 seller, how can volume/price signify more of one than…
Brian
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S&P 500 Prediction

What technical tools can I use to help predict whether the S&P 500 will rise or fall tomorrow? (Assuming no major events occur)
chrislam5459
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Does Technical Analysis work or is it just a pointless attempt to "time the market"?

I just ran into the concept of Technical Analysis and decided to go ahead and read a book about it. Before I start reading, I'm curious. Do most people use it successfully? Or is it just a waste of time? Specifically among those who only care about…
user19035
10
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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 you use? What studies exist which show evidence…
DanTilkin
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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 this meant, I started to discover that technical…
Shane
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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 monkey A and B. Monkey A is believes that…
user1770
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Why have candlestick charts overlaps?

my understanding of candlestick charts is that they are composed of open/high/low/close values of a particular timeframe. Now, if I opt for a, say, hourly chart, this would imply that the opening value of any candle should exaclty match the closing…
dlrts
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What kind of activity do the long candle-lines on candlestick charts correspond to?

The image at the bottom shows the price of a particular stock earlier today on a red/green candlestick chart. Some of the candle bodies have thin lines ,circled in red, sticking up (circled on one candle) and down (circled on another candle). There…
user100487
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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?
Victor
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