Master technical analysis with our comprehensive guides on trading strategies and indicators. Educational content for informed decision-making.
Learn proven approaches to market analysis and timing
Understand the 10 most powerful indicators and how to use them
Confluence trading involves waiting for multiple technical indicators to align before entering a position. This approach significantly increases probability of success by requiring confirmation from various independent sources.
Trend following is a strategy that aims to capture gains through the analysis of an asset's momentum in a particular direction. The premise is simple: identify the trend and trade in its direction.
Mean reversion is based on the theory that prices and returns eventually move back towards their historical average. When an asset deviates significantly from its mean, it tends to revert back.
Breakout trading involves entering a position when the price moves outside a defined support or resistance level with increased volume. The key is identifying genuine breakouts versus false ones.
Measures the speed and magnitude of recent price changes. Values above 70 suggest overbought conditions, while below 30 indicates oversold.
Shows the relationship between two moving averages. Crossovers signal potential trend changes, while divergences warn of weakening momentum.
Creates dynamic support and resistance using standard deviations from a moving average. Band width indicates volatility levels.
Smooth price data to identify trends. EMAs react faster to recent prices, while SMAs give equal weight to all periods.
Confirms price movements with participation. High volume validates trends, while low volume suggests weak conviction.
Identifies potential reversal levels based on key ratios (23.6%, 38.2%, 50%, 61.8%). Often used to find entry points in trending markets.
Measures market volatility by decomposing the entire range of an asset price. Essential for setting appropriate stop losses.
Compares closing price to price range over time. Like RSI, identifies overbought/oversold conditions but with different calculation.
Trading and investing in financial markets carries significant risk of loss. The educational content provided here is for informational purposes only and should not be considered financial advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a qualified financial adviser before making investment decisions. Never risk more than you can afford to lose.