Archive for the ‘Stock Research’ Category

Continuation Chart Patterns

Continuation patterns usually indicate that the sideways price action on the chart is nothing more than a pause in the prevailing trend, and that the next move will be in the same direction as the trend that preceded the formation. Continuation patterns are usually shorter term in duation and are ...

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The Head and Shoulders Reversal Pattern

What is probably the best known and most reliable of all major reversal patterns is the head and shoulders reversal. Most of the other reversal patterns are just variations of the head and shoulders.   The left and right shoulders (A and E) are at about the same ...

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Options Trading Procedures

Every options trader needs to be familiar with the basic features of the market. So, we explore the action that takes place on the market floor and the ways in which traders away from the exchange can have their orders executed on the exchange. Essentially, there are three types of ...

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The Significance of Support and Resistance

What is support? Support is a level or area on the chart under the market where buying interest is sufficiently strong to overcome selling pressure. as a result, a decline is halted and prices turn back up again. Usually a support level is identified beforehand band a previous reaction low. What ...

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How to draw trendline

The trendline helps not only to determine the extremities of the corrective phases, but tells us when the trend is changing. A up trendline provides a support boundary under the market that can be used as a buying area. A down trendline can be used as a resistance area for ...

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What are Price Patterns

Price patterns are pictures or formations, which appear on price charts of stocks or commodities, that can be classified into different categories, and that have predictive value. Two types of patterns There are two major categories of price patterns--reversal and continuation. Reversal patterns indicates that an important reversal in trend is taking ...

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Basic Concepts of Trend

The concept of trend is absolutely essential to the technical approach to market analysis. All of the tools used by the chartist-support and resistance levels, price patterns, moving averages, trendlines, etc. -have the sole purpose of helping to measure the trend of the market for the purpose of participating in ...

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The Basic Tenets of Dow Theory

Dow Theory forms the cornerstone of the study of technical analysis, even in the face of today's sophisticated computer technology, and the proliferation of newer and supposedly better technical indicators. Basic Tenets 1. The averages discount everything. The sum and tendency of the transactions of the Stock Exchange represent the sum of all ...

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Philosophy of Technical Analysis

There are three premises on which the technical approach is based: 1. Market action discounts everything. This is probably the cornerstone of technical analysis. The technician believes that anythig that can possibly affect the price--fundamentally, politically, psychologically, or otherwise--is actually reflected in the price of that market. It follows, therefore, that a ...

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Technical versus Fundamental Forecasting

While technical analysis concentrates on the study of market action, fundamentals analysis focuses on the economic forces of supply and demand that cause prices to move higher, lower, or stay the same. The fudamental approach examines all of the relevant factors affecting the price of a market in order to ...

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