Technical Analysis

Volume

Volume represents the total number of shares, contracts, or lots traded during a specific period. It confirms trend strength and potential reversals.

Volatility

Volatility measures the rate and magnitude of price changes in a financial instrument. High volatility means large price swings; low volatility means stable prices.

Technical Analysis

Technical analysis studies price charts and statistical indicators to forecast future price movements. Based on the idea that price reflects all known information.

Support

Support is a price level where buying pressure is strong enough to prevent the price from falling further. It acts as a floor on price movement.

RSI (Relative Strength Index)

RSI is a momentum oscillator that measures the speed and change of price movements on a scale of 0 to 100. Used to identify overbought and oversold conditions.

Resistance

Resistance is a price level where selling pressure is strong enough to prevent the price from rising further. It acts as a ceiling on price movement.

Price Action

Price action trading focuses on raw price movement without indicators. Traders analyze candlestick patterns, support/resistance, and chart formations.

Moving Average

A moving average smooths price data to identify trends. The most common types are Simple Moving Average (SMA) and Exponential Moving Average (EMA).

Gap

A gap is a price level where no trading occurred, creating a visible jump on a chart. Common at market open or after major news events.

Fibonacci Retracement

Fibonacci retracement uses horizontal lines to indicate areas of support or resistance at key Fibonacci levels before price continues in the original direction.

Chart Pattern

Chart patterns are recognizable formations on price charts that suggest future price direction. They include reversal and continuation patterns.

Candlestick Pattern

Candlestick patterns are visual formations on price charts that indicate potential price reversals or continuations. Originated in Japanese rice trading.

Bollinger Bands

Bollinger Bands consist of a middle SMA and two outer bands that measure volatility. They expand during high volatility and contract during low volatility.

ATR (Average True Range)

ATR measures market volatility by calculating the average range of price candles over a specified period. Widely used for setting stop-loss levels.