Technical Analysis Reference Centre

Tops & Bottoms, Failure Swings, Divergence

2006-07-18T20:54:00.000+08:00

Traders watch for double tops or what Wilder referred to as "failure swings."

If the RSI makes a double top formation, with the first top above 70% and the second top below the first, you get a sell signal when the RSI falls below the level of the dip.

Conversely, a double bottom at or below 30% (with the first low below 30% and the second at or above the same level) gives you a buy signal when the RSI breaks above the previous peak.These failure swings can lead to divergences between the price action and the RSI.

For example, a divergence occurs when a market makes a new high or low, but the RSI fails to set a matching new high or low. A divergence can be an indication of an impending reversal. In Wilder's opinion, divergences are the most important signal provided by RSI

.http://www.chartfilter.com/reports/c39.htm

Technical Analysis of Stock Trends, 8th Edition

2006-06-06T23:14:00.001+08:00

A Classic work on Technical Analysis, June 11, 2000
Reviewer:
Charles W. Martin, Jr. (Baldwinsville, NY United States) - See all my reviewsI read Edwards and McGee, Technical Analysis of Stock Market Trends with great enthusiasm. Here was a book that was originally written in the 1940's that is equally valid to anyone trying to play the stock market in the Twenty First Century. It also gave me insights into the wild times on Wall Street in the Roaring 20's, and taught me how the pros did stock manipulation and organized "bear traps." Understanding Wall Street irrational exuberance in 1928 helps a smart investor understand the irrational exuberance in 1999. I started reading and then using Technical Analysis because I found I couldn't make money on the market just using the fundamental analysis that my accounting professors taught me in business school. I bought stocks based on detailed analysis of the firm's fundamentals and then could not understand why the prices of my "smart" investments immediately dropped like a rock. Technical analysis provides an investor with insights into the market forces (supply and demand) that affect the rise and fall of stock prices and give a rational investor understanding of the psychology of the herd of investors.
Modern web technology available from Clearstation and E-trade take the drudgery out of the technical charting, and make it easy for an amateur investor to become an experienced technical chart reader. Edwards and McGee was the book that helped me develop this skill. I can not praise the authors of this book enough.

http://www.amazon.com/gp/product/0814406807/ref=pd_sim_b_3/104-7902098-9532714?%5Fencoding=UTF8&v=glance&n=283155

Technical Analysis of Stock Trends, 8th Edition

2006-06-06T23:14:00.000+08:00

Asia Tiger - Filling lower gap first

2006-05-16T22:54:00.000+08:00

Testing 17.5 to 16.5 cents support band. Gap at 17 cents created at the ened of 2005 will be filled. Short term rebounce to 20 cents if 17.5 to 16.5 support band remains intact.

Aus Group - Testing uptrend support line soon

2006-04-29T18:14:00.000+08:00

Major support band 32 to 31 cents. Breakdown from red uptrend will most probabily end the current uptrend run and see price heading down to support region between 28 cents to 26 cents.

China Sun - Hammer spotted ?

2006-04-23T23:14:00.000+08:00

Requires confirmation tomorrow. Support gap is at 89.5 cents to 90.5 cents. Hammer upper shadow resistance is 95.5 cents.

Andrew's Pitchfork

2006-04-22T23:45:00.000+08:00

Description
Andrews' Pitchfork is a line study consisting of three parallel lines. The lines are drawn from three points that you select.

The three trendlines are drawn as follows:

The first trendline begins at the left-most point selected and is drawn so it passes directly between the right-most points. This line is the handle of the pitchfork.
The second and third trendlines are then drawn beginning at the right-most points and are drawn parallel to the first line. These lines are the tines of the pitchfork.

Interpretation
The interpretation of a Pitchfork is based on normal trendline support and resistance principles.

http://www.paritech.com/education/technical/indicators/support/andrews.asp

Andrews' Pitchfork

2006-04-18T23:59:00.000+08:00

Back in the 1960s, Dr. Alan H. Andrews launched a one-of-a-kind home study course for stock and commodity traders. His idea was "to help investors gain confidence in the wonderful order underlying random change." He aimed his course at "traders with common sense, and a deep desire to become wealthy." In the course, and at seminars for course members, Dr. Andrews taught the fine points of his "Action/Reaction" techniques. One of those techniques was "The Pitchfork." It was to become his namesake. Originally called the "Median Line Study," it is included today in several well-known computer charting programs. The "Andrews' Pitchfork," as it is called these days, is a powerful set of chart lines drawn at uncommon places on a price chart. When linked together, the arrangement of lines closely resembles a farmer's pitchfork. So, that's what people started calling his median line study...."Andrews' Pitchfork." But his trading course covered a lot more ground than just "The Pitchfork." The course theme was based on the "Law of Action and Reaction," as suggested to him by a close friend, Roger Babson, to whom he gave much of the credit for his findings. Mr. Babson, the author of several business and finance books, was regarded as a foremost authority on the application of "Newtons' Action and Reaction Law," as it related to business cycles and stock market price swings. Dr. Andrews stopped offering his course several years ago because of his advancing years and failing health. He has since passed away. I was privileged to become acquainted with Dr. Andrews through his course and at his advanced seminars.

http://www.pitchforkprimer.com/

Technical Analysis of Stock Trends, 8th Edition

2006-04-16T22:10:00.000+08:00

Technical Analysis of Stock Trends, 8th Edition, is a critical reference for investors--especially in today's tumultuous markets. This seminal book--the first to produce a methodology for interpreting and profiting from the predictable behavior of investors and markets--revolutionized technical investment approaches and continues to show traders and investors how to make money regardless of what the market is doing. Now, with the addition of noted technical analysis authority W. H. Charles Bassetti (editor)--as well as charts and graphs that pertain to today's market environment and major stocks--this completely updated and revised edition confirms the wisdom of the original work for today's markets. Technical traders and chartists will turn to it for:

* Information on utilizing electronic markets, the Internet, wireless communications, and new exchanges, plus current ideas on portfolio management and risk management
* Chapters on futures and derivatives charting and trading
* Expanded treatment of "runaway" markets--to help put the recent Internet stock craze in perspective
"Chart formations," states Charles Bassetti in the preface, "are the language of the market."
" Technical Analysis of Stock Trends, 8th Edition, translates that language for a new generation of technical traders and investors.

http://www.prophet.net/learn/loadbook.jsp?LoadPage=http%3A%2F%2Fwww.invest-store.com%2Fcgi-bin%2Fprophetfinance-bin%2Fmoreinfo.cgi%3Fitem%3D17379

Key Reversal

2006-04-15T00:00:00.000+08:00

The key reversal does not occur very often but is very reliable when it does.

After an up-trend:

The Open must be above yesterday's Close,
The day must make a new High, and
The Close must be below yesterday's Low.

After a down-trend:

The Open must be below yesterday's Close,
The day must make a new Low, and
The Close must be above yesterday's High.

Remember:

The signals are most reliable if they occur after a strong trend. If the trend is weak, so is the signal.

http://www.incrediblecharts.com/technical/key_reversal.htm

2006-02-18T19:00:00.000+08:00

KEY REVERSAL DAYS

Other frequently-used names for key reversal include "one-day reversal" and "reversal day." These are all the same; don't let anybody tell you otherwise! Regardless of what you refer to it as, the definition of a key reversal is:

Following an uptrend, any day in which a new high is made, yet prices close near their lows (and preferably on high volume).

Following a downtrend, it is any day in which a new low for the trend is made, but prices close near their daily high (again, preferably on high volume).

Note that the definitions above do not contain any mention of the following (these are common misconceptions about key reversals):

Requirement for the market to close down at the end of an uptrend.Requirement for the market to close up at the end of a downtrend.

Requirement that the day be an outside day (an outside day is when both the high and the low fall outside the previous day's trading range).

http://www.streetauthority.com/terms/technicalanalysis/keyreversal.asp

2005-11-12T00:47:00.000+08:00

JAPANESE CANDLESTICKS

In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation.

http://www.candlesticker.com

2005-11-12T00:40:00.000+08:00

Candlestick Patterns

http://www.hotcandlestick.com/candles.htm

2005-11-12T00:32:00.000+08:00

CANDLESTICK TERMS AND DEFINITIONS

http://www.candlestickshop.com/

2005-11-11T21:57:00.000+08:00

Technical Analysis

is the study of price and volume that are present in the market to date. The aim of technically analyzing the market is to produce advanced warning of trend reversals and to provide supporting evidence of price continuation patterns through a look at the current supply and demand in the marketplace. Clearly what is known fundamentally about the current and future earnings environment, the economy and the potentials for corporate profit is reflected in some way in the daily changes of supply and demand. All of what is known to date, and what is perceived about the future, combines with the specific circumstances of the investor to produce trading decisions. Price and volume patterns often repeat over time as the process of news dissemination, market tone and psychological setting reoccur. Technical analysis is valuable in allowing us to perceive patterns, identify resolutions to patterns, look for confirming market action, or tell tale signs of changing supply and demand.

http://www.trade10.com/technical.htm

2005-11-10T16:30:00.000+08:00

Introduction to Candlesticks

http://www.stockcharts.com/education/ChartAnalysis/candlesticks.html

2005-11-10T15:46:00.000+08:00

Bullish Candlesticks Chart Patterns

http://www.daytradinguniversity.com/candlesticks.htm

2005-11-10T15:31:00.000+08:00

Profitable Candlestick Trading

Tested, proven, and successful, Japanese Candlestick charting and analysis is one of the most profitable–yet underutilized–ways to trade the market. In Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits, Candlestick trading expert Stephen Bigalow shows you how to recognize and harness the power of Candlestick signals as well as implement them into a profitable trading system. Signals created by this unique technical analysis method–represented in the form of graphic "Candlestick" formations–identify the immediate direction and effects of investor sentiment through price movements, and allow you to trade profitably by realizing trend reversals before other investors do.

http://www.traderspress.org/detail.asp?product_id=1983

2005-11-10T09:57:00.000+08:00

Candlestick Patterns : An Overview

http://www.daytradersbulletin.com/html/cs1.html