Learn to Trade Stocks
Chart Overlays Archive
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Price Channel
PRICE CHANNEL the pattern Commodity or stock prices go up and down from time to time. When you draw a pair of parallel lines to approximate the trend of the prices, you are creating a price channel. When the prices pass through the channel and stays through a trend indicating resistance or support, there exists [...] -
Moving Average
MOVING AVERAGE the mean When dealing with time series data, a moving average smooths out short-term fluctuations. It also highlights long-term trends. Practical applications of the moving average would be in the analyses of technical data like trade volumes, stock prices, gross domestic product (GDP), employment, and other time-series data. Simple Moving Average The term [...] -
Pivot Point
PIVOT POINT predictive indicator of market movement It is Simply an Average A pivot point is calculated as an average of significant prices, namely the High, Low, and Close from the performance of a market in the previous trading period. If the market in the following period trades above the pivot point it is usually [...] -
Bollinger Bands
BOLLINGER BANDS measure the height of the price relative to previous trades This is a technical analysis tool invented by John Bollinger in the 1980s. This evolved from the concept of trading bands. Bollinger Bands are typically used to measure the highness or lowness of the price relative to the trades previously made. Composition of [...] -
Trend Lines
TREND LINES a bounding line for the movement of a security Definitions: 1) When you can draw a diagonal line between two or more price pivot points, you can then form a trend line. 2) The bounding line for the price movement of a security is a trend line. 3) When a security’s price decreases, [...]