Technical Analysis
RSI Divergence: Hidden Trend Signals
RSI divergence shows up when the Relative Strength Index and price stop agreeing with each other. Stock prints a new high, RSI prints a…
Technical Analysis
Technical Analysis
Trend Lines: Drawing and Trading
A trend line is the simplest tool on the chart and one of the few I still draw by hand on every name I…
Chart Patterns
Rounding Bottom Pattern: The Slow Reversal
The rounding bottom — sometimes called a saucer or U-bottom — is the slowest reversal pattern on the chart, and that’s the whole point.…
Chart Patterns
Wedge Patterns: Rising and Falling
A wedge pattern is a chart formation where two trendlines slope in the same direction — both up or both down — while squeezing…
Technical Analysis
Ichimoku Cloud: A Complete Trading System
The Ichimoku Kinko Hyo — "one glance equilibrium chart" — is a technical analysis system built by Japanese journalist Goichi Hosoda in the late…
Technical Analysis
Fibonacci Retracements: The Golden Ratio in Trading
Fibonacci retracements come wrapped in more mysticism than any other tool on the chart, and most of it is garbage. The math is real.…
Technical Analysis
Candlestick Patterns: Reading Price Action
A candle is one period’s argument between buyers and sellers, drawn on the chart. Daily, hourly, five-minute — pick the timeframe and the candle…
Technical Analysis
Bollinger Bands: Volatility, Squeezes, and Trading Signals
Bollinger Bands are a volatility envelope wrapped around a 20-period simple moving average. The upper and lower lines sit at ±2σ of the closing-price…
Trading Strategies
Swing Trading: Capturing Multi-Day Moves
Swing trading is what most people on a screen actually do, even when they call it something else. Holding period: two days to a…
Technical Analysis
MACD: Moving Average Convergence Divergence
The MACD — Moving Average Convergence Divergence — is a momentum indicator Gerald Appel built in the late 1970s that maps the relationship between…
Technical Analysis
RSI: The Relative Strength Index
The Relative Strength Index (RSI) is a momentum oscillator J. Welles Wilder Jr. built in 1978 to measure the speed and magnitude of recent…
Technical Analysis
Support and Resistance
Support and resistance are the oldest ideas in technical analysis and still the two I lean on hardest after eighteen years on a screen.…
Technical Analysis
Moving Averages Explained
AAPL, late May 2023. The stock had been riding above its 20-day EMA for six straight weeks, pulling back to tag the line twice…
Stock Trading Encyclopedia
Technical Analysis
Technical analysis is the study of price action and trading volume to forecast where a stock heads next. Fundamental analysis reads the company —…
Chart Patterns
Head and Shoulders Pattern
META, fall of 2022. The stock had been bleeding all year and then put in a three-peak rally between September and late October that…