What is Technical Analysis?

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Unlike fundamental analysis, which focuses on a company's financial health, technical analysis focuses on price patterns and market trends.

Our ticker screener uses advanced technical analysis to automatically identify the best swing trading opportunities based on multiple indicators and patterns. Learn more about specific indicators like RSIand MACD.

Essential Technical Indicators

RSI (Relative Strength Index)

RSI is a momentum oscillator that measures the speed and magnitude of price changes. It ranges from 0 to 100 and helps identify overbought and oversold conditions. Values above 70 typically indicate overbought conditions, while values below 30 indicate oversold conditions. Read our detailed RSI analysis guide for more information.

MACD (Moving Average Convergence Divergence)

MACD is a trend-following momentum indicator that shows the relationship between two moving averages. It consists of the MACD line, signal line, and histogram. MACD crossovers and divergences provide valuable buy and sell signals. Learn more in our MACD signals guide.

Bollinger Bands

Bollinger Bands consist of a middle band (simple moving average) and two outer bands that are standard deviations away from the middle band. They help identify price volatility and potential reversal points.

Moving Averages

Moving averages smooth out price data to identify trends. Common types include Simple Moving Average (SMA) and Exponential Moving Average (EMA). Moving average crossovers are popular trading signals.

Chart Patterns

Support and Resistance

Support levels are price points where buying interest is strong enough to prevent further price declines. Resistance levels are price points where selling pressure is strong enough to prevent further price increases.

Trend Lines

Trend lines are diagonal lines drawn on charts to connect significant price points. They help identify trend direction and potential breakout points.

Chart Patterns

Common chart patterns include triangles, flags, pennants, head and shoulders, and double tops/bottoms. These patterns often indicate potential price movements and trading opportunities.

Volume Analysis

Volume is a crucial component of technical analysis. High volume confirms price movements and indicates strong market interest. Low volume during price movements may suggest weak conviction.

Volume Indicators

• On-Balance Volume (OBV): Measures buying and selling pressure
• Volume Rate of Change: Shows volume momentum
• Accumulation/Distribution Line: Combines price and volume

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