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Moving Averages Divergence Resistance stock charts
Monday, July 4, 2005

Stock Trading

If you trade stocks online, invest in stocks, trade the stock market, looking for advise on how to trade stocks effectively and looking for the tools to effectively trade the stock market. Including the right tools to research for investing, or day trading or swing trading. Including but not limited to penny stocks and high beta momentum then this tutorial is for you.

 

Technical Analysis

Moving averages--CONSISTENCY MOST IMPORTANT AND A PERSONAL PREFERENCE

13EMA
34EMA
50EMA
200EMA

(Moving averages are one of the most popular and easy to use tools available to the technical analyst. They smooth a data series and make it easier to spot trends, something that is especially helpful in volatile markets. They also form the building blocks for many other technical indicators and overlays.)

Technical Analysis

The price action of a security over a period of time will create strength at certain price levels. These levels are known as "resistance" (Or what Trending123.com calls PISSED OFF SUPPLY) at the top end of the range of trading, and "support" at the bottom end of the trading range. This trading range may develop over just a couple of months, or sometimes it can take a year or more to develop. This usually depends on the range the technician is examining.

Technical Analysis

Bearish Divergence In Rising Stocks

Bearish Divergence In Rising Stocks

Bullish Divergence In Falling Stocks

Bullish Divergence In Falling Stocks

DIVERGENCE--Volatility is a form of market inefficiency. It is a reaction to incomplete information (i.e., uncertainty). Excessive volatility is irrational. The confluence of mass greed, mass fear, and mass disagreement regarding how to react to information yields to wild price fluctuations.

Technical Analysis

Bullish:

Engulfing Line (Bullish)
Island Bottom

Bearish:

Engulfing Line (Bearish)
Island Top

Other:

Gap Down
Gap Up
Gravestone
Hammer
Hanging Man
Inverted Hammer
Shooting Star

Indicators

Indicators that are currently supported are based on moving average calculations.

Bullish or Bearish:

Double Moving Average Crossover
Price Crosses Moving Average
Triple Moving Average Crossover

Oscillators

Oscillators are based on mathematical formulas that incorporate historical or recent prices of the stock.

Bullish or Bearish:

Bollinger Bands
Commodity Channel Index
Fast Stochastic
KST (Short-term, Intermediate-term, Long-term)
MACD
Momentum
Relative Strength Index (RSI)
Slow Stochastic
Williams %R