Technical analysis: the guide, from charts to indicators
The technical analysis index, theme by theme
13 themes · 512 entries · 12 lessons online01The basics
27 lessons12 deeper dives5 online
- how to read a chart: candles, scales, timeframes
- trend, support and resistance, trendlines and channels
- gaps, divergences, breakouts and false breakouts
- What is technical analysis
- Market discounts everything
- Efficient market hypothesis
- History of technical analysis
- Technical vs fundamental analysis
- Types of stock charts
- Candlestick chart
- Log scale vs linear scale
- Trading time frames
- Weekly chart trading
- Multiple time frame analysis
- Uptrend: higher highs and higher lows
- Market structure trading
- Open interest
- Support and resistance
2 deeper dives
- Support becomes resistance
- Round numbers trading
- Trendline
3 deeper dives
- Trendline break
- Fan principle
- Three touch trendline
- Price channel
- Pullback trading
- Breakout trading
- Key reversal
- Reversal patterns
- Stock gaps
4 deeper dives
- Breakaway gap
- Measuring gap
- Exhaustion gap
- Gap fill trading
- Bullish divergence
- Volume confirmation
- Overbought vs oversold
- Moving average crossover
3 deeper dives
- Golden cross
- Death cross
- 200 day moving average
- How to read stock charts
02The schools
21 lessons173 deeper dives1 online
- the origins: Dow, Wyckoff, Elliott, Gann
- today’s schools: VSA, order flow, price action, Smart Money
- intermarket, cycles and seasonality, relative strength
- Dow theory
5 deeper dives
- Dow theory principles
- Primary trend
- Dow theory phases
- Dow jones transportation average
- Dow theory criticism
- Wyckoff method
37 deeper dives
- Richard wyckoff
- Wyckoff laws
- Wyckoff supply and demand
- Wyckoff cause and effect
- Effort vs result wyckoff
- Composite operator wyckoff
- Wyckoff market cycle
- Trading range
- Wyckoff accumulation
- Wyckoff schematics
- Wyckoff distribution
- Wyckoff distribution schematic
- Wyckoff reaccumulation
- Wyckoff redistribution
- Wyckoff phases
- Preliminary support
- Selling climax
- Buying climax
- Automatic rally
- Secondary test wyckoff
- Wyckoff spring
- Shakeout trading
- Utad wyckoff
- Sos wyckoff
- Sow wyckoff
- Last point of support
- Lpsy wyckoff
- Wyckoff creek
- Jump across the creek
- Wyckoff five step approach
- Wyckoff nine buying tests
- Wyckoff point and figure
- Wyckoff volume profile
- Wyckoff mistakes
- Wyckoff indicator
- Weis wave
- Studies in tape reading
- Volume spread analysis
7 deeper dives
- No demand bar
- No supply bar
- Stopping volume
- Volume climax
- Effort vs result
- Volume price analysis
- Effective volume
- Market profile
9 deeper dives
- Poc trading
- Value area trading
- Low volume node
- Tpo chart
- Market profile shapes
- Virgin point of control
- Auction market theory
- Initial balance trading
- Bracket trading
- Order flow
6 deeper dives
- Footprint chart
- Volume delta
- Cumulative volume delta
- Order book
- Tape reading
- Absorption trading
- Elliott wave
9 deeper dives
- Elliott impulse wave
- Abc correction
- Elliott wave rules
- Elliott wave extension
- Elliott wave triangle
- Elliott wave fibonacci
- Elliott wave alternation
- Leading diagonal
- Elliott wave channeling
- Wd gann
4 deeper dives
- Gann angles
- Gann square of 9
- Gann fan
- Gann cycles
- Price action
9 deeper dives
- Pin bar
- Inside bar
- Outside bar pattern
- Fakey pattern
- Price action strategy
- Al brooks bar counting
- Second entry price action
- 2b reversal
- 1-2-3 reversal
- Smart money concepts
7 deeper dives
- Order block
- Fair value gap
- Break of structure
- Change of character
- Liquidity sweep
- Inducement trading
- Ict trading
- Trading chaos
2 deeper dives
- Williams fractals
- Accelerator oscillator
- Tom demark
2 deeper dives
- Td sequential
- Td setup
- Point and figure chart
5 deeper dives
- Point and figure box size
- Point and figure patterns
- 3 box reversal
- Point and figure price objective
- Point and figure relative strength
- Intermarket
41 deeper dives
- Intermarket relationships
- Commodities and bonds
- Bonds and stocks
- Weak dollar
- Dollar index
- Yield curve
- Gold silver ratio
- Dollar and stock market
- Stocks and commodities correlation
- Gold and dollar
- Gold and stocks
- Interest rates and stock market
- Crb index
- Utilities leading indicator
- Strong dollar stocks
- Global stock market correlation
- European stocks vs us stocks
- Stock market sectors
- Commodity relative strength
- Asset class rotation
- Business cycle investing
- Six stages of business cycle
- Defensive stocks
- Sector rotation
- Sector rotation strategy
- Risk on risk off
- Stock bond correlation change
- Deflation stock market
- Market correlations
- Regression analysis trading
- Intraday correlation
- Intermarket indicators
- Intermarket trading strategies
- Sector etfs
- Neural networks trading
- 1987 crash
- Asian financial crisis 1997
- 2000 market top
- Weak dollar 2002
- 2007 market top
- Program trading
- Market cycles
7 deeper dives
- Hurst cycles
- Presidential election cycle stock market
- Stock market seasonality
- Cycle analysis trading
- Kondratieff wave
- Cycle translation
- January effect
- Relative strength stocks
4 deeper dives
- Relative rotation graph
- Relative strength comparison
- Mansfield relative strength
- Julius de kempenaer
- Trend following
4 deeper dives
- Turtle trading
- Donchian breakout
- Guppy multiple moving average
- Count back line
- Stage analysis
3 deeper dives
- Stage 2 uptrend
- Triple confirmation pattern
- Weinstein short selling
- Momentum investing
6 deeper dives
- Can slim
- Volatility contraction pattern
- Darvas box
- Jesse livermore
- Minervini trend template
- Sepa minervini
- Alexander elder
4 deeper dives
- Triple screen trading system
- Elder impulse system
- Safezone stop
- Kangaroo tail pattern
- Larry williams trading
2 deeper dives
- Volatility breakout
- Larry williams market structure
- Taylor trading technique
03The indicators
88 lessons24 deeper dives4 online
- moving averages and trend indicators
- momentum, volatility and volume
- for each one: the formula, how to read it, a real chart
- Simple moving average (SMA)
- Exponential moving average
2 deeper dives
- 9 21 ema
- Ema vs sma
- Weighted moving average
- Vwma
- Hull moving average
- Double exponential moving average
- Triple exponential moving average
- Zero lag ema
- Kaufman adaptive moving average
- Arnaud legoux moving average
- Frama indicator
- Mcginley dynamic
- Mama fama
- Linear regression curve
- Average directional index
1 deeper dive
- Directional movement index
- Aroon indicator
- Parabolic sar
1 deeper dive
- Parabolic sar strategy
- Supertrend indicator
1 deeper dive
- Supertrend strategy
- Ichimoku cloud
3 deeper dives
- Kumo cloud
- Kijun sen
- Ichimoku strategy
- Vortex indicator
- Vertical horizontal filter
- Choppiness index
- Chande trend score
- Alligator indicator
- Zigzag indicator
- Schaff trend cycle
- Trix indicator
- Detrended price oscillator
- Coppock curve
- Kst indicator
- Hurst exponent
- Ranging market
- RSI — Relative Strength Index
3 deeper dives
- Rsi divergence
- Rsi settings
- Rsi trading strategy
- Stochastic oscillator
2 deeper dives
- Stochastic crossover
- Stochastic settings
- Stochastic rsi
- Connors rsi
- Williams r
- Cci indicator
- Roc indicator
- Macd
4 deeper dives
- Macd crossover
- Macd histogram
- Macd divergence
- Macd trading strategy
- Ppo indicator
- Awesome oscillator
- Ultimate oscillator
- Chande momentum oscillator
- True strength index
- Fisher transform
- Relative vigor index
- Stochastic momentum index
- Demarker indicator
- Disparity index
- Wavetrend oscillator
- Center of gravity oscillator
- Premier stochastic oscillator
- Pretty good oscillator
- Elder ray
- Balance of power indicator
- Chande forecast oscillator
- Ttm squeeze
- Bollinger Bands
3 deeper dives
- Bollinger band squeeze
- Bollinger bands strategy
- Walking the bands
- Bollinger percent b
- Bollinger bandwidth
- Keltner channel
- Donchian channel
- Atr indicator
1 deeper dive
- Atr trailing stop
- Standard deviation trading
- Historical volatility
- Chaikin volatility
- Ulcer index
- Mass index indicator
- Chandelier exit
- Trading volume
- On balance volume
- Money flow index
- Chaikin money flow
- Chaikin oscillator
- Accumulation distribution
- Price volume trend
- Negative volume index
- Klinger oscillator
- Force index
- Ease of movement
- Volume oscillator
- Twiggs money flow
- Vwap
2 deeper dives
- Anchored vwap
- Vwap trading strategy
- Volume profile
1 deeper dive
- Session volume profile
- Pivot points
- Heikin ashi candles
- Candlestick pattern recognition
Moving averages · 14
Trend and ranges · 18
Momentum and oscillators · 26
Volatility · 12
Volume · 15
Levels and chart shapes · 3
04Market breadth and sentiment
12 lessons
- how many stocks take part in the move
- advance-decline, McClellan, new highs and lows
- sentiment: contrary opinion, surveys, fund flows
- Advance decline line
- Mcclellan oscillator
- Mcclellan summation index
- New highs new lows
- Stocks above 50 day moving average
- Up down volume
- Arms index
- Tick index
- Bullish percent index
- Contrarian investing
- Aaii sentiment survey
- Fund flows
05Drawing tools
7 lessons9 deeper dives
- Fibonacci on the chart
- Andrews’ pitchfork, channels, speed lines
- the position tool: risk and target drawn on the chart
- Fibonacci levels
6 deeper dives
- Fibonacci retracement
- Fibonacci extension
- Fibonacci channel
- Fibonacci fan
- Fibonacci time zones
- Fibonacci spiral trading
- Andrews pitchfork
3 deeper dives
- Median line trading
- Hagopian rule
- Sliding parallel
- Parallel channel trading
- Speed resistance lines
- Horizontal line trading
- Elliott wave count
- Risk reward tool
06Chart patterns
30 lessons10 deeper dives1 online
- reversal: head and shoulders, double and triple tops and bottoms
- continuation: triangles, flags, wedges, rectangles
- for every pattern: how to recognise it and the measured target
- Head and shoulders
4 deeper dives
- Complex head and shoulders
- Failed head and shoulders
- Head and shoulders continuation pattern
- Head and shoulders target
- Inverse head and shoulders
- Double top pattern
1 deeper dive
- Adam and eve pattern
- Double bottom pattern
- Triple top pattern
- Triple bottom pattern
- Symmetrical triangle pattern
- Ascending triangle pattern
- Descending triangle pattern
- Bull flag
1 deeper dive
- High tight flag
- Bull pennant
- Rising wedge pattern
- Falling wedge pattern
- Rectangle chart pattern
- Cup and handle pattern
1 deeper dive
- Inverted cup and handle
- Rounding bottom
- Rounded top pattern
- Megaphone pattern
2 deeper dives
- Right angled broadening formation
- Ascending broadening wedge
- Diamond top pattern
- Island reversal
1 deeper dive
- Long island reversal
- V shaped recovery
- Bump and run pattern
- Measured move
- Horn bottom
- Pipe bottom pattern
- Ascending scallop
- Three rising valleys
- Dead cat bounce
- Wolfe wave
- Saucer pattern
07Short-term patterns
10 lessons
- one-, two- and three-bar patterns
- inside day, outside day, NR4 and NR7
- the setups of Larry Williams and Street Smarts
- Inside day trading
- Outside day trading
- Nr7
- Oops pattern
- Turtle soup trading
- 80 20 pattern
- Holy grail trading
- Momentum pinball
- Wide range bar
- 3 bar reversal pattern
08Candlestick patterns
33 lessons3 deeper dives
- one candle: doji, hammer, shooting star
- two and three candles: engulfing, harami, morning and evening star
- where they count: within the trend and at the right level
- Doji candle
3 deeper dives
- Dragonfly doji
- Gravestone doji
- Long legged doji
- Hammer candlestick
- Inverted hammer candlestick
- Hanging man candlestick
- Shooting star candlestick
- Bullish engulfing
- Bearish engulfing
- Bullish harami
- Harami cross
- Piercing line
- Dark cloud cover
- Morning star candlestick
- Evening star candlestick
- Morning doji star
- Abandoned baby pattern
- Three white soldiers
- Three black crows
- Three inside up
- Three outside up
- Rising three methods
- Marubozu candle
- Spinning top candle
- Tweezer top
- Kicker candlestick
- Bullish belt hold
- Tasuki gap
- Upside gap two crows
- Stick sandwich
- Homing pigeon candlestick
- Matching low
- Counterattack lines
- On neck pattern
- Ladder bottom
09Harmonic patterns
8 lessons
- patterns built on Fibonacci ratios
- ABCD, Gartley, butterfly, bat, crab, shark
- point D: where the pattern completes
- Abcd pattern trading
- Gartley pattern
- Butterfly pattern trading
- Bat harmonic pattern
- Crab harmonic pattern
- Shark harmonic pattern
- Cypher harmonic pattern
- Three drives pattern
10Alternative charts
6 lessons
- charts that set time aside
- Renko, Kagi, three line break
- range bars, tick and equivolume
- Renko
- Kagi chart
- Three line break
- Range bars
- Tick chart
- Equivolume
11Technical strategies
15 lessons
- the horizons: scalping, day, swing, position trading
- the approaches: breakout, pullback, mean reversion, momentum
- building a trading system in five steps
- Swing trading
- Day trading
- Scalping trading
- Position trading
- Breakout trading strategy
- Mean reversion
- Pullback trading strategy
- Momentum trading
- Orb strategy
- Gap trading
- Support and resistance trading
- Channel trading
- Stock screening
- How to short a stock
- Trading system development
12Risk management
17 lessons1 online
- stop loss, take profit, trailing stop
- how much to buy: position sizing and the 2 per cent rule
- drawdown, expectancy, backtesting and the trading journal
- Stop loss
- Take profit
- Trailing stop loss
- Risk reward ratio
- Position size calculator
- Money management trading
- Drawdown
- Trading expectancy
- Backtesting
- Trading plan
- Stop limit order
- 2 percent rule trading
- 6 percent rule elder
- Pyramiding trading
- Diversification vs concentration
- Optimal f
- Trading journal
13Technical analysis by market
7 lessons
- stocks, indices and ETFs
- forex and commodities
- cryptocurrencies and futures: what changes
- Technical analysis of stocks
- Nasdaq technical analysis
- Forex technical analysis
- Crypto technical analysis
- Gold technical analysis
- Etf technical analysis
- Futures technical analysis
Technical analysis on a real chart
Switch on the 200-day average and the Bollinger Bands: two lessons from the guide on the same chart.
Anatomy of a technical analysis chart
Fig. 1 · What to look at
- The price is read in the candles: one per session.
- Lines and levels say where the price stopped and where it is going.
- Below the price, in separate panels: volume and the oscillators.
- Every element has its lesson in the guide: below, one by one.
The candles
- open, close, high and low of every session
- green if they close above the open, red if below
- the lesson: Japanese candlesticks
The trendline
- the line through rising lows, or falling highs
- it tells the direction of the trend
- the lesson: the trendline
Support and resistance
- the levels where the price stopped and turned
- once a level is broken, it switches roles
- the lesson: support and resistance
The moving average
- the average of the last n closes, session after session
- the trend without the noise
- the lesson: the moving average
Volume
- how many shares changed hands in every session
- it confirms or denies a move
- the lesson: volume
The oscillator
- an indicator that swings between two extremes
- overbought above, oversold below
- the lesson: the RSI
Where to start
12 lessons in order1What is technical analysis
- the study of price and volume to recognise the trend and the levels
- three premises: price discounts everything, trends, history repeats
- exercise: uptrend, downtrend or sideways on three real charts
The basics
2Dow theory
- the three trends and the three phases
- the confirmation between Industrials and Transports on real data
- the six principles in figures
The schools
3Candlestick chart
- the four prices of a session: body and shadows
- green and red, long and short bodies, long shadows, the doji
- find the candle on a real chart: the judge says yes or no with the numbers
The basics
4Uptrend: higher highs and higher lows
- higher highs and higher lows: how to recognize an uptrend
- swing points, and the two signals that end a trend
- mark the higher lows yourself on a real chart
The basics
5Support and resistance
- the level where the decline stopped, and the one where the rise stopped
- touches, time and volume: how much a level counts; once broken, it switches roles
- find the level yourself on a real chart: the judge counts the touches
The basics
6Trendline
- the line through rising lows: two points and the third touch
- the break with the 3% filter, the fan, the channel
- where the line runs, day by day
The basics
7Simple moving average (SMA)
- the average of the last n closes, recalculated every session
- 20, 50 and 200 days, golden cross, death cross and lag
- try the periods on a real chart and find the crossovers
The indicators
8Bollinger Bands
- a volatility indicator: a 20-day average and two bands
- the calculation step by step, %B, the squeeze
- try the parameters on a real chart
The indicators
9Trading volume
- how many shares change hands in each session
- high or low against the 20-day average
- find the highest-volume session on a real chart
The indicators
10RSI — Relative Strength Index
- an oscillator from 0 to 100: the strength of gains against losses
- 70 and 30, the 50 line, divergences
- find overbought on the real chart and change the settings
The indicators
11Head and shoulders
- a bearish reversal pattern: three peaks and the neckline
- two real examples: one that worked, one that failed
- work out the measured target
Chart patterns
12Stop loss
- an order that closes the position at a level decided before entering
- below the last swing low, a support level, a trendline, or two ATRs away
- pick the entry day on a real chart and count the shares
Risk management
A-Z index of technical analysis
12 entriesWhere to go from here
Frequently asked questions about technical analysis
What is technical analysis?
The study of a market’s prices and volume to read its trend and the levels where supply and demand have already met. It rests on three ideas: price discounts everything, prices move in trends, behaviour tends to repeat.
What is the difference between technical and fundamental analysis?
Fundamental analysis studies the company and its value; technical analysis studies price and volume. The first asks what a stock is worth, the second how it is moving.
Where do you start studying technical analysis?
With candles, the trend, support, resistance and trendlines; then moving averages, volume and an oscillator such as the RSI. The path on this page puts them in order.
What are the most used technical analysis indicators?
Moving averages, RSI, MACD, Bollinger Bands, stochastic, ATR and volume. The guide explains the indicators of the platform chart, one per lesson.
Method and sources
| Source |
|---|
| The classics of technical analysis cited in every lesson: Murphy, Edwards and Magee, Bollinger, Kirkpatrick and Dahlquist. |
The chart at the top uses the official closes of the Dow Jones Industrial Average from to . Every lesson declares its data; the numbered figures are diagrams drawn to explain. This guide explains how the tools work: it does not contain investment recommendations and promises no returns. Our method · licence · report an error.
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