When the closing price is higher than the opening price, the candle is usually green or white, indicating buying strength.
When the closing price is lower than the opening price, the candle is usually red or black, indicating selling pressure.
A price level where buying interest is strong enough to prevent the stock from falling further.
A price level where selling pressure tis strong enough to prevent the stock from rising higher.
Trendlines are drawn by connecting higher lows in an uptrend or lower highs in a downtrend. They help identify the overall market direction.
Common chart patterns include triangles, flags, double tops, double bottoms, and head-and-shoulders patterns. These formations often signal whether the price is likely to continue its trend or reverse.
Calculates the average price over a set period. It gives equal weight to all prices in the range.
Places more weight on recent prices and responds faster to market changes, making it more reactive to new data.
When the price is above a moving average, it suggests an uptrend. When the price is below, it suggests a downtrend.
Measures whether a stock is overbought or oversold. Above 70 may indicate overbought; below 30 may indicate oversold.
Shows the relationship between two moving averages and helps identify trend direction and momentum.
Represents the number of shares traded. High volume confirms strong market interest, while low volume may suggest weak price movement.
Technical trading requires time, experience, and daily market monitoring. While full-time traders dedicate years to mastering these skills, many retail and home-based investors choose to follow professional firms or experienced traders who analyze the market full time.
By trading the same signals from experts, investors can make more informed trading decisions and are more likely to succeed in the stock market.