Technical Analysis

18 concepts in this category.

• RSI (Relative Strength Index)

  RSI scores a stock from 0–100. Above 70 means it's been rising so fast it might be due for a pullback (overbought). Below 30 means it's fallen a lot and could bounce (oversold).

• MACD

  MACD compares two moving averages to show momentum. When the fast line crosses above the slow line, it's a buy signal. Cross below = sell signal. Like two runners — when the faster one pulls ahead, momentum is shifting.

• Simple Moving Average (SMA)

  Take the last 50 days of prices and average them. That's the 50-day SMA. It smooths out daily noise so you can see the real trend. Price above its SMA = uptrend; below = downtrend.

• Exponential Moving Average (EMA)

  Like a regular moving average but it pays more attention to recent prices. If a stock just had a big move, the EMA reacts faster than the SMA. Traders use EMA crossovers to spot trend changes early.

• Bollinger Bands

  Three lines around a stock's price: a middle average and two outer bands. When the price touches the upper band, it might be overbought. Touch the lower band, possibly oversold. When the bands squeeze together, a big move is coming.

• ADX (Average Directional Index)

  ADX tells you how strong a trend is on a scale of 0–100. Above 25 means there's a real trend happening. Below 20 means the market is choppy with no clear direction.

• ATR (Average True Range)

  ATR tells you how much a stock typically moves in a day. If a $100 stock has ATR of $3, it moves about 3% daily. High ATR means volatile; low ATR means calm. Useful for setting stop-loss distances.

• OBV (On-Balance Volume)

  OBV adds volume on up days and subtracts on down days. The idea: if prices are rising but volume is weak, the move isn't convincing. When OBV rises before price, big money may be accumulating.

• VWAP

  VWAP is the true average price traders paid throughout the day, weighted by how many shares traded at each price. Institutions use it as a benchmark — buying below VWAP is considered a good fill.

• Stochastic Oscillator

  Stochastic measures where today's close is relative to the recent high-low range, on a 0–100 scale. Above 80 means the stock closed near its recent highs (overbought). Below 20 means near recent lows (oversold).

• Williams %R

  Similar to stochastic but inverted. Scaled from 0 to -100. Readings near 0 mean the stock closed near its recent high (overbought). Near -100 means near its recent low (oversold).

• Support Level

  A support level is like a floor — when a stock falls to that price, buyers tend to step in and it bounces back up. The more times a price level holds, the stronger the support.

• Resistance Level

  Resistance is like a ceiling — when a stock rises to that price, sellers take profits and the price falls back. A breakout above resistance is a bullish signal that the stock may make new highs.

• Volume Profile

  Volume profile shows where most trading happened at different price levels. Heavy trading at a price means traders consider it fair value. Low trading zones are areas where price moves fast.

• Moving Average Crossover

  The golden cross (50-day crosses above 200-day MA) is one of the most famous buy signals. The death cross (50-day crosses below 200-day) is a sell signal. It's simple but followed by many professional traders.

• Rate of Change (ROC)

  ROC measures how fast a price is moving. If a stock was $100 ten days ago and is $110 today, its 10-day ROC is +10%. High ROC means strong momentum; a reading near zero means the move has stalled, and negative ROC means the price is falling versus that earlier point.

• Supertrend

  Supertrend draws a line that flips above or below the price to show the trend. When price is above the line (green), you're in an uptrend. When price falls below (red), the trend has reversed.

• Keltner Channels

  Similar to Bollinger Bands but uses ATR instead of standard deviation. Three lines: middle EMA and upper/lower channels. Price outside the channels suggests a strong trend. Inside = normal trading range.