Technical Analysis Map

 

What is Technical Analysis?

Technical Analysis aims to forecast the future price movement of all financial traded assets. This forecast is based on historic price movement and focuses on two aspects: (i) current price and (ii) past price behavior. Actually, technical analysis can not forecast the future but it can help investors draw a probability table consisting probable future price scenarios. More specifically technical analysis may:

(1) Help investors to optimize their investing decisions by buying oversold assets and by selling overbought assets

(2) Help investors optimize their entry / exit levels in every position they open / close

Technical analysis is applicable to all financial traded assets (Forex, commodities, stocks, indices, bonds, etc). Technical analysis combined with fundamental analysis form a complete framework of investing analysis.

 

Technical Analysis Basics

Technical analysis which is based on the old Dow Theory consist two basic assumptions:

  • The Price discounts everything
  • The Price Movement of financial traded assets is not Random

Tony Plummer, in his book: “The Psychology of Technical Analysis” wrote that ‘Technical analysts know the price of everything, but the value of nothing’. This is partly true and that is why technical analysis should always be used along with fundamental analysis.

 

  

Technical Analysis Map

Here is a map with almost all important technical analysis tools.

 

(1) Charts

Charts

(2) Patterns

Chart Patterns

  • Head and shoulders
  • Cup and handle
  • Double top / Double Bottom
  • Rounding Top / Rounding Bottom
  • Triple top / triple bottom
  • Triangles
  • Flag and pennant
  • Gap
  • Price channels
  • Wedge pattern

» Find more about the Major Chart Patterns

Candlestick Patterns

  • Doji, » more about Doji
  • Hammer / Hanging man,
  • Marubozu
  • Shooting star
  • Morning star / Evening Star
  • Spinning top
  • Three Black Crows
  • Three white soldiers
  • Railway Tracks
  • Hikkake pattern
  • Harami

 

(3) Indicators

Trend

Momentum

Volatility

Volume

  • Ease of movement (EMV)
  • Force index (FI)
  • Accumulation/distribution line
  • Money flow index (MFI)
  • On-balance volume (OBV)
  • Put/call ratio (PCR)
  • Volume–price trend (VPT)
  • Negative volume index (NVI)

 

Other

  • Commodity channel index (CCI)
  • Advance–decline line (ADL)
  • Keltner channel
  • McClellan oscillator
  • Arms index (TRIN)
  • Coppock curve
  • Ulcer Index

 

(4) Support and Resistance

Support

and Resistance

 

COMPARE: » Forex Brokers List | » Binary Option Brokers List

 

Read More: » What is Stochastic Oscillator | » What is Williams %R | » What is Pivot Point | » What is RSI | » What is MACD  | » What are Round Numbers?

 

 

 

Technical Analysis Map

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