Technical Analysis

Technical analysis is founded on three basic tenets from Dow Theory, underpinned by the concept of support and resistance..

Support and resistance are the foundation stone of all technical analysis.

The key to analysing bar charts: control, commitment, OHLC, whipsaws, long and short positions...

Expose hidden trends: markets trend in more than one direction at the same time...

Attributes of an uptrend on a stock market chart with examples.

Three main indicators of the strength of a trend.

Dow Theory lays out the basic principles of technical analysis, identifying trend changes and bull and bear markets.

Charles Dow believed that stocks yielding below 3.5% were over-priced. Nowadays, we use Robert Shiller's CAPE or PE based on highest trailing earnings.

Warren Buffett's indicator and the price-to-sales ratio for the S&P 500 avoid distortions from fluctuating earnings and profit margins.

The behavior of the market is the most powerful influence on the performance of every stock.

The change in prices on any day is influenced by a number of cycles in different time frames...

Edwin Coppock designed this oscillator with one sole purpose: to identify the commencement of bull markets.

Developed by Chartcraft, the index combines bull signals from individual stocks to identify market trends.

William J. O'Neill identifies these signals in 24 Essential Lessons for Investment Success.

Interest rates have a big influence on stock markets because of three factors.