Tag Archives: trend

Trend Analysis – The Core Fundamental of Technical Analysis

15 Jan

This entry is part 3 of 3 in the series Technical Analysis Guide 101 - Getting Started

Stock market trends offer the best profit opportunities. Position traders like to size up their investment holdings at the beginning of the trend and pyramiding it along the way as the trend continues. Stock market traders begin to dispose their equity holdings in stages when near the end of the trend as well as the beginning of the trend reversal stage. That is one of the profitable ways to trade the stock market. Financial markets trends also exist in various time frames simultaneously. Regardless of the types of strategies used in trading or investing in the financial markets, trend analysis is the core fundamental work of technical analysis and therefore it is our objective to spot trend as early as possible for maximum benefits and to reverse position once we have the confirmation of trend reversal.

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Patience – The key to successful investing and trading

1 Jul

"Wait….. Wait….. Wait….. NOW!" this phrase is often heard in war movies before they strike the enemy. Patience whispers to us to wait for the right moment before striking. Patience continues its echo in nature and also in many aspects of our life too. This is the principles behind many successful people and this is one of the very important traits for investors and traders. It doesn’t matter whether you are investing for the long run or doing short term trading or even day trading, patience is the key to your success. I can’t stress enough on this. Let’s see how we could improve our investing skill and trading timing with patience as one of our virtue.

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Chart Analysis is Your Compass in Financial Markets

7 Jun

This entry is part 2 of 3 in the series Technical Analysis Guide 101 - Getting Started

In the jungle of financial markets, one of the compasses to guide us in making better trading decision will be the chart. Chart analysis is the heart of technical analysis and it is getting more popular in these days compared to Time and Sales (T/S) as it provides visual perspective to the financial market action. In this post, we will take a look at various stock price charts and their characteristics. Basically most stock price charts contains the following information such as asset name or company name, date and time of trading transaction, last traded price and volume. Price information can further be divided into opening, high, low and closing prices for the recorded time session. However some charts may not incorporate all the information for their interpretation to filter out financial market noises.

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Basic Principles of Technical Analysis

19 May

This entry is part 1 of 3 in the series Technical Analysis Guide 101 - Getting Started

In this introduction series, we will explore technical analysis (TA) as one of the methodology that is commonly used in stock market analysis. In TA, we will study the balance of demand and supply ratio and its strength using various tools available. One of the common pitfalls of newcomer in stock investment and speculation field is that they either attempt to use a single market analysis tool in isolation or crowding their stock charts with too many indicators. You heard the common sense phrases that things don’t exist in a vacuum and too many cooks spoilt the soup. All we need is the tools that are working for us.

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