Technical Analysis (TA)
Technical analysis is the practice of using price and volume data to value stocks. It upholds the idea that supply and demand, that jointly constitute market forces, ultimately determine the stock price. Technical analysis is a concept widely used to…
Technical Analysis Charts
Technical analysis charts are graphical displays that show asset price and trade volume data. Charts provide technicians with information about past price fluctuations. We can use such data to predict future market performance. There are different types of charts used…
Trend, Support, Resistance Lines and Change in Polarity
Trend Trend is perhaps one of the most important concepts in technical analysis. Under normal circumstances, market participants tend to make similar decisions and a trend may persist for some time. The following are a few additional concepts that every…
Common Chart Patterns
A chart pattern is a distinct trading formation appearing repeatedly and which can be used to predict future price movements of a given stock. The formations appear on price charts and create unique, recognizable shapes. Analysts study these formations when…
Technical Analysis Indicators
Technical analysis indicators are measures used to predict changes in the price of a security price based on price, market sentiment, or flow of funds. In essence, they try to establish how potential changes in market forces (supply and demand)…
Use of Cycles for Technical Analysis
Cycles are trends or patterns that may be exhibited by the securities market. The trends or patterns directly affect prices, leading to seasonal or periodical fluctuations that may recur over and over again. Cycles may also lead to some securities…
The Elliott Wave Theory
Elliott wave theory was developed by Ralph Nelson Elliott in late 1930s. His discovery changed the perception about stock market trading, which was thought to be chaotic and disorganized at the time. The theory revealed that trading, in fact, follows…
Inter-market Analysis
Inter-market analysis is a method of determining the strength or weakness of an asset class or financial market relative to other related asset classes or financial markets. These asset classes may include stocks, bonds, commodities, or even loan facilities. The…
Introduction to Probability: Definition of Terms
Probability is a measure of the likelihood that something will happen. We usually express probabilities as percentages, from 0 (impossible to happen) to 100% (guaranteed). In fact, we can express almost any event as a probability, e.g., the likelihood that…
Defining Properties of a Probability
Defining properties of a probability refer to the rules that constitute any given probability. They are outlined below.
