About Technical Analysis

In the world of technical analysis, price movements are not random—they often follow patterns that can be analyzed and predicted. One of the most advanced and powerful methods used by professional traders is Gann Angles. Developed by…
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Overview : Leonardo Fibonacci was a mathematician who was born in Italy around the year 1170. It is believed that Mr. Fibonacci discovered the relationship of what are now referred to as Fibonacci numbers while studying the Great Pyramid of…
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Overview : Equivolume displays prices in a manner that emphasizes the relationship between price and volume. Equivolume was developed by Richard W. Arms, Jr., and is further explained in his book Volume Cycles in the Stock Market. Instead…
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Overview : The Elliott Wave Theory is named after Ralph Nelson Elliott. Inspired by the Dow Theory and by observations found throughout nature, Elliott concluded that the movement of the stock market could be predicted by observing and…
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Overview : The Ease of Movement indicator shows the relationship between volume and price change. As with Equivolume charting, this indicator shows how much volume is required to move prices. The Ease of Movement indicator was developed…
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Overview : In 1897, Charles Dow developed two broad market averages. The "Industrial Average" included 12 blue-chip stocks and the "Rail Average" was comprised of 20 railroad enterprises. These are now known as the Dow Jones Industrial…
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Overview : Developed by J. Welles Wilder and introduced in his book, New Concepts in Technical Trading Systems (1978), the Average True Range (ATR) indicator measures a security's volatility. As such, the indicator does not provide an…
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Overview : Correlation analysis measures the relationship between two items, for example, a security's price and an indicator. The resulting value (called the "correlation coefficient") shows if changes in one item (e.g., an indicator)…
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Average Directional Index (ADX) Welles Wilder Jr. developed the Average Directional Index (ADX) in order to evaluate the strength of the current trend, be it up or down. It's important to detemine whether the market is trending or trading…
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Overview : The Aroon indicator was developed by Tushar Chande.  Aroon is Sanskrit word “dawn’s early light” or the change from night to day.  The Aroon indicator allows you to anticipate changes in security prices from trending to trading…
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