About Technical Analysis

Overview : Developed by Welles Wilder, the Swing Index seeks to isolate the "real" price of a security by comparing the relationships between the current prices (i.e., open, high, low, and close) and the previous period's prices.…
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Overview : Speed Resistance Lines ("SRL"), sometimes called 1/3-2/3 lines, are a series of trendlines that divide a price move into three equal sections. They are similar in construction and interpretation to Fibonacci Fan Lines.…
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On Balance Volume is an : accumulated total of volume. The basic premise behind On Balance Volume is that changes in it will be seen before price changes.  On Balance Volume is often used because it's easier to visualize than the volume. …
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Rate of change measurements measure momentum, which is the rate at which price changes are taking place. Consider a golf drive, for example. A well-hit ball leaves the tee quickly, rising and gaining altitude quickly.  Momentum is very…
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Overview : The Money Flow Index ("MFI") is a momentum indicator that measures the strength of money flowing in and out of a security. It is related to the Relative Strength Index, but where the RSI only incorporates prices, the Money Flow…
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Overview : Linear regression is a statistical tool used to predict future values from past values. In the case of security prices, it is commonly used to determine when prices are overextended. A Linear Regression trendline uses the least…
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Center Line :  MA(CL, Period, Type) Hi Band :  Center Line + MA(True Range, Period, Type) * HiMultiplier Lo Band :  Center Line - MA(True Range, Period, Type) * LoMultiplier True Range TR = MAX{ 1- ABS(HI1 - LO) 2- ABS(HI - CL1) 3-…
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Overview : Kagi charts are believed to have been created around the time that the Japanese stock market began trading in the 1870s. Kagi charts display a series of connecting vertical lines where the thickness and direction of the lines are…
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Implied volatility is : a key variable in most option pricing models, including the famous Black-Scholes Option Pricing Model. Other variables usually include : security price, strike price, risk-free rate of return and days to expiration.…
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Overview : W. D. Gann (1878-1955) designed several unique techniques for studying price charts. Central to Gann's techniques was geometric angles in conjunction with time and price. Gann believed that specific geometric patterns and angles…
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