Category: Technical Analysis

market trend technical indicators

Technical analysts often say the trend is your friend. In other words, a stock going up in price is more likely to keep going up. Alternatively, one that is going down in price is more likely to keep going down. By having a clear view of the trend, you can decide whether to buy, sell…

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Fibonacci Retracement Definition

Do you know the Fibonacci Retracement definition? With technical trading, we need to know where we can expect to see support and resistance levels. Fibonacci retracements are horizontal lines indicating where levels of support and resistance will likely occur. The levels stem from a Fibonacci sequence, which is a mathematical formula that originated in the 13th century….

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Greed and Fear

Efficient markets should incorporate all available information into the price of an asset.  However, there is not just a lag between a data announcement and the change to the price, but periods where a market will be overbought or undersold.  What is an explanation for these instances?  Is it due to investor emotion? That’s where…

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Market Breadth Indicators

Market breadth indicators are an excellent metric to use to gauge the relative stock performance between stocks that are advancing and stocks that are declining. These indicators are essential for people tackling the stock market, and they can also help offer valuable insights into potential stock market movements, allowing you as a trader to remain…

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Supply and Demand Zones

If you ever took an intro to economics class in school, you must be aware that the law of supply and demand governs the market and how we operate. The law of supply and demand ends up ruling more things than you would otherwise think. In fact, these laws govern everything from your local farmer’s…

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Does Warren Buffett’s #1 indicator predict market crashes

Does Warren Buffett’s #1 indicator predict big market crashes? Suddenly everyone thinks the stock market is going to tank as Warren Buffett’s favorite market indicator is flashing red. Topping 200%, does this mean stocks are overvalued, and a crash is around the corner? Maybe yes, maybe no. With that in mind, let’s break down what…

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Morning Panic Pattern

What’s a morning panic pattern? Do you have a small account you’re looking to grow? Likely you’re here looking for ways to build your account, and I’m pretty certain this pattern may be one of the best for that. It will get you to that point. Today, I will be looking at one of the most…

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First Red Day Pattern

What is the first red day pattern? Since mid-March 2009, we’ve had a bull market. Those willing to short have taken their lives into their own hands. Even a lot of smart money was lost with the Gamestop short squeeze. Smart money rarely loses.  We may be heading for a long-overdue bear market. For this reason,…

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Voodoo lines are the newest technical indicator put out by Simpler Trading. It’s supposed to predict future support and resistance. Any trader worth his or her salt knows the importance of support and resistance trading. That being said, a superior technical indicator that can predict the future is revolutionary. Have You Heard of Voodoo Lines?…

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Wolfe Wave

Unlike other chart patterns, the Wolfe wave forecasts where the price is going and when it will get there. What other patterns will do this for you? If I had a quarter for every time someone said they wished they had a crystal ball to predict stock prices, I’d be rich. But what if I…

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