Principles of Stocks Technical Analysis

To come up with a stocks trading strategy a trader will need to learn about the following stock technical analysis concepts

What Is a Stocks Technical Chart?

Stock technical analysis includes the use of stocks charts to analyze stock price movements using stock price patterns in an attempt to predict the future stock price movement based on the stock price patterns.

What are Support & Resistance Levels in Stock Trading?

Support and resistance levels are used to analyze stock chart areas that act as barriers for stock price movements. Support levels is like the floor of the stock price while resistance levels is like the ceiling of the stock price.

Stock traders use support and resistance levels that form on the stocks charts to set their stock stop loss orders or stock take profit orders. Stocks traders also use support and resistance levels on stocks trading to open new stock trades & to close open stock trades.

Stocks price will normally bounce of these stock support and resistance levels and this is why these stock support and resistance levels are used by stock traders to generate trading signals.

What are Stocks Trend Lines?

Stock trend lines are used in stock trading so as to figure out the direction of the stock trend.

An upwards stock trend will be drawn on a stock chart when stock prices are moving upwards. Therefore, this upward stock trend line will be used to show an upward movement of stock prices - upward stock trend.

A downward stock trend will be drawn on a stock chart when stock prices are moving downwards. Therefore, this downward stock trend line will be used to show downward movement of stock prices - downward stock trend.

Once a stock trend line forms on the stock charts then stock prices are likely to keep moving in direction of the stock trend line for some time until when there is stock trend-line break stock trend reversal signal.

What are Stock Technical Indicators?

Stock technical indicators are stock trading tools used by stock traders to generate trading signals.

There are various stock technical indicators used in stock technical analysis & these indicators will be used to analyze the stock trend stock price movement as well as the momentum of the stock trend.

Some of the most commonly used stock technical indicators include:

Moving Averages Stock Trading Technical IndicatorMACDRSIADXStochastic Oscillator Technical Indicator

What are Stock Candlesticks Patterns?

Stocks candlesticks patterns are stock candlestick formations that are used to interpret the stock price movement based on the pattern of a stock candlestick or a pattern of a series of stocks trading candles.

The various stock candlesticks patterns used in stocks trading are:

Continuation Stocks Candlestick PatternsReversal Stocks Candle Patterns

What are Stocks Chart Patterns?

Stocks chart patterns are commonly repeating stock price patterns that form on the stock trading charts.

These stock chart patterns are commonly used by stock traders to analyze the future stock price movement based on the type of stock chart pattern has formed on the stock charts.

The various stock chart patterns used in stock trading are:

Continuation Stock Chart PatternsReversal Stock Chart Patterns

About Stocks Technical Analysis

Stocks traders wanting to study more about each of the above stock technical analysis tools can get more data from the learn stock trading section - stock technical analysis concepts that explains the above stock technical analysis stock trading concepts.

This stock technical analysis concepts guide can be found on the main side navigation menu of this learn stock trading web site under the learn stock lessons section.