|
Technical Analysis Software
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. As a type of active management, it stands in contradiction to much of modern portfolio theory. The efficacy of technical analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results.Osler, Karen (July 2000). "Support for Resistance: Technical Analysis and Intraday Exchange Rates," FRBNY Economic Policy Reviewabstract and paper here. It is distinguished from fundamental analysis, which considers a company's financial statements, health, and the overall state of the market and economy. History The principles of technical analysis are derived from hundreds of years of financial market data. Some aspects of technical analysis began to appear in Amsterdam- ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Analysis
Analysis (: analyses) is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (384–322 BC), though ''analysis'' as a formal concept is a relatively recent development. The word comes from the Ancient Greek (''analysis'', "a breaking-up" or "an untying" from ''ana-'' "up, throughout" and ''lysis'' "a loosening"). From it also comes the word's plural, ''analyses''. As a formal concept, the method has variously been ascribed to René Descartes ('' Discourse on the Method''), and Galileo Galilei. It has also been ascribed to Isaac Newton, in the form of a practical method of physical discovery (which he did not name). The converse of analysis is synthesis: putting the pieces back together again in a new or different whole. Science and technology Chemistry The field of chemistry uses analysis in three ways: to i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ralph Nelson Elliott
Ralph Nelson Elliott (28 July 1871 – 15 January 1948) was an American accountant and author whose study of stock market data led him to develop the Wave Principle, a description of the cyclical nature of trader psychology and a form of technical analysis. It identifies trends and reversals in financial markets. These cyclical patterns in price movements are known among practitioners of the method as ''Elliott waves''. Personal life and career Elliott was born in Marysville, Kansas, and later moved to San Antonio, Texas. He entered the accounting field in the mid-1890s and worked primarily in executive positions for railroad companies in Central America and Mexico. In 1903, Elliott married Mary Elizabeth Fitzpatrick (1869–1941), who accompanied him during his extended time working as an expatriate in Mexico. Civil unrest there brought the couple back to the United States and eventually to a residence in New York City, where Elliott started a successful consulting business. I ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Volatility (finance)
In finance, volatility (usually denoted by "sigma, σ") is the Variability (statistics), degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price of a market-traded derivative (in particular, an option). Volatility terminology Volatility as described here refers to the actual volatility, more specifically: * actual current volatility of a financial instrument for a specified period (for example 30 days or 90 days), based on historical prices over the specified period with the last observation the most recent price. * actual historical volatility which refers to the volatility of a financial instrument over a specified period but with the last observation on a date in the past **near synonymous is realized volatility, the square root of the realized variance, in turn c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
MACD
MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of securities prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock's price. The MACD indicator (or "oscillator") is a collection of three time series calculated from historical price data, most often the closing price. These three series are: the MACD series proper, the "signal" or "average" series, and the "divergence" series which is the difference between the two. The MACD series is the difference between a "fast" (short period) exponential moving average (EMA), and a "slow" (longer period) EMA of the price series. The average series is an EMA of the MACD series itself. The MACD indicator thus depends on three time parameters, namely the time constants of the three EMAs. The notation "MACD(''a'',''b'',''c'')" usually denotes the indicator where the MACD series is the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Relative Strength Index
The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. The indicator should not be confused with relative strength. The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of price movements. Momentum is the rate of the rise or fall in price. The relative strength RS is given as the ratio of higher closes to lower closes. Concretely, one computes two averages of absolute values of closing price changes, i.e. two sums involving the sizes of candles in a candle chart. The RSI computes momentum as the ratio of higher closes to overall closes: stocks which have had more or stronger positive changes have a higher RSI than stocks which have had more or stronger negative changes. The RSI is most typically used on a 14-day timeframe, measured on a scale from 0 to 10 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cup And Handle
In the domain of technical analysis of market prices, a cup and handle or cup with handle formation is a chart pattern consisting of a drop in the price and a rise back up to the original value, followed first by a smaller drop and then a rise past the previous peak. It is interpreted as an indication of bullish sentiment in the market and possible further price increases. The cup part of the pattern should be fairly shallow, with a rounded or flat "bottom" (not a V-shaped one), and ideally reach to the same price at the upper end of both sides. The drop of the handle part should retrace about 30% to 50% of the rise at the end of the cup. For stock prices, the pattern may span from a few weeks to a few years; but commonly the cup lasts from 1 to 6 months, while the handle should only last for 1 to 4 weeks. [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Flag And Pennant Patterns
The flag and pennant patterns are commonly found patterns in the price charts of financially traded assets (stock Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporatio ...s, bonds, futures, etc.). The patterns are characterized by a clear direction of the price trend, followed by a consolidation and rangebound movement, which is then followed by a resumption of the trend. They are continuation patterns and form when the asset prices rally or fall sharply. Flag pattern The flag pattern is encompassed by two parallel lines. These lines can be either flat or pointed in the opposite direction of the primary market trend. The pole is formed by a line which represents the primary trend in the market. The pattern, which could be bullish or bearish, is seen as the market potentially just ta ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Moving Average
In statistics, a moving average (rolling average or running average or moving mean or rolling mean) is a calculation to analyze data points by creating a series of averages of different selections of the full data set. Variations include: #Simple moving average, simple, #Cumulative moving average, cumulative, or #Weighted moving average, weighted forms. Mathematically, a moving average is a type of convolution. Thus in signal processing it is viewed as a low-pass filter, low-pass finite impulse response filter. Because the boxcar function outlines its filter coefficients, it is called a boxcar filter. It is sometimes followed by Downsampling (signal processing), downsampling. Given a series of numbers and a fixed subset size, the first element of the moving average is obtained by taking the average of the initial fixed subset of the number series. Then the subset is modified by "shifting forward"; that is, excluding the first number of the series and including the next value in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Technical Indicator
In technical analysis in finance, a technical indicator is a mathematical calculation based on historic price, volume, or (in the case of futures contracts) open interest information that aims to forecast financial market direction. Technical indicators are a fundamental part of technical analysis and are typically plotted as a chart pattern to try to predict the market trend A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time .... Indicators generally overlay on price chart data to indicate where the price is going, or whether the price is in an "overbought" condition or an "oversold" condition. Many technical indicators have been developed and new variants continue to be developed by traders with the aim of getting better results. New Indicators are often backtested on historic pr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Double Top And Double Bottom
Double top and double bottom are reversal chart patterns observed in the technical analysis of financial trading markets of stocks, commodities, currencies, and other assets. Double top The double top is a frequent price formation at the end of a bull market A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time .... It appears as two consecutive peaks of approximately the same price on a price-versus-time chart of a market. The two peaks are separated by a minimum in price, a ''valley''. The price level of this minimum is called the neck line of the formation. The formation is completed and confirmed when the price falls below the neck line, indicating that further price decline is imminent or highly likely. The double top pattern shows that demand is outpacing supply (buyers predomin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Head And Shoulders (chart Pattern)
On the technical analysis chart, the head and shoulders formation occurs when a market trend A market trend is a perceived tendency of the financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time ... is in the process of reversal either from a bullish or bearish trend; a characteristic pattern takes shape and is recognized as reversal formation. Head and shoulders top Head and shoulders formations consist of a left shoulder, a head, and a right shoulder and a line drawn as the neckline. The left shoulder is formed at the end of an extensive move during which volume is noticeably high. After the peak of the left shoulder is formed, there is a subsequent reaction and prices slide down somewhat, generally occurring on low volume. The prices rally up to form the head with normal or heavy volume and subsequent reaction downward is acco ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
