Editing Technical analysis (section)

==Charting terms and indicators==

===Concepts===
* [[Average true range]]{{spaced ndash}}averaged daily trading range, adjusted for price gaps.
* [[Breakout (technical analysis)|Breakout]]{{spaced ndash}}the concept whereby prices forcefully penetrate an area of prior [[Support (technical analysis)|support]] or [[Resistance (technical analysis)|resistance]], usually, but not always, accompanied by an increase in volume.
* [[Chart pattern]]{{spaced ndash}}distinctive pattern created by the movement of security or commodity prices on a chart
* [[Stock market cycles|Cycles]]{{spaced ndash}}time targets for potential change in price action (price only moves up, down, or sideways)
* [[Dead cat bounce]]{{spaced ndash}}the phenomenon whereby a spectacular decline in the price of a stock is immediately followed by a moderate and temporary rise before resuming its downward movement
* [[Elliott wave principle]] and the [[golden ratio]] to calculate successive price movements and retracements
* [[Fibonacci ratio]]s{{spaced ndash}}used as a guide to determine support and resistance and retracement percentages
* [[Momentum (technical analysis)|Momentum]]{{spaced ndash}}the rate of price change
* [[Point and figure chart|Point and figure analysis]]{{spaced ndash}}A priced-based analytical approach employing numerical filters which may incorporate time references, though ignores time entirely in its construction
* [[Resistance (technical analysis)|Resistance]]{{spaced ndash}}a price level that may prompt a net increase of selling activity
* [[Support (technical analysis)|Support]]{{spaced ndash}}a price level that may prompt a net increase of buying activity
* [[Market trend|Trending]]{{spaced ndash}}the phenomenon by which price movement tends to persist in one direction for an extended period of time

===Types of charts===
* [[Candlestick chart]]{{spaced ndash}}Of Japanese origin and similar to OHLC, candlesticks widen and fill the interval between the open and close prices to emphasize the open/close relationship. In the West, often black or red candle bodies represent a close lower than the open, while white, green or blue candles represent a close higher than the open price.
* [[Line chart]]{{spaced ndash}}Connects the closing price values with line segments. You can also choose to draw the line chart using open, high or low price.
* [[Open-high-low-close chart]]{{spaced ndash}}OHLC charts, also known as bar charts, plot the span between the high and low prices of a trading period as a vertical line segment at the trading time, and the open and close prices with horizontal tick marks on the range line, usually a tick to the left for the open price and a tick to the right for the closing price.
* [[Point and figure chart]]{{spaced ndash}}a chart type employing numerical filters with only passing references to time, and which ignores time entirely in its construction.

===Overlays===
Overlays are generally superimposed over the main price chart.
* [[Bollinger bands]]{{spaced ndash}}a range of price volatility
* [[Price channels|Channel]]{{spaced ndash}}a pair of parallel trend lines
* [[Ichimoku]] kinko hyo{{spaced ndash}}a moving average-based system that factors in time and the average point between a candle's high and low
* [[Moving average]]{{spaced ndash}}an average over a window of time before and after a given time point that is repeated at each time point in the given chart. A moving average can be thought of as a kind of dynamic trend-line.
* [[Parabolic SAR]]{{spaced ndash}}Wilder's [[Stop loss order|trailing stop]] based on [[prices]] tending to stay within a [[Parabola|parabolic]] curve during a strong trend
* [[Pivot point (stock market)|Pivot point]]{{spaced ndash}}derived by calculating the numerical average of a particular currency's or stock's high, low and closing prices
* [[Resistance (technical analysis)|Resistance]]{{spaced ndash}}a price level that may act as a ceiling above price
* [[Support (technical analysis)|Support]]{{spaced ndash}}a price level that may act as a floor below price
* [[Trend lines (technical analysis)|Trend line]]{{spaced ndash}}a sloping line described by at least two peaks or two troughs
* Zig Zag{{spaced ndash}}This chart overlay that shows filtered price movements that are greater than a given percentage.

===Breadth indicators===
These indicators are based on statistics derived from the broad market.
* [[Advance–decline line]]{{spaced ndash}}a popular indicator of [[market breadth]].
* [[McClellan Oscillator]] – a popular [[closed form expression|closed-form]] indicator of breadth.
* [[McClellan Oscillator|McClellan Summation Index]] – a popular [[Series (mathematics)#Infinite series|open-form]] indicator of breadth.

===Price-based indicators===
These indicators are generally shown below or above the main price chart.
* [[Average directional index]]{{spaced ndash}}a widely used indicator of trend strength.
* [[Commodity channel index]]{{spaced ndash}}identifies cyclical trends.
* [[MACD]]{{spaced ndash}}[[moving average]] convergence/divergence.
* [[Momentum (technical analysis)|Momentum]]{{spaced ndash}}the rate of price change.
* [[Relative strength index]] (RSI){{spaced ndash}}oscillator showing price strength.
* Relative Vigor Index (RVI){{spaced ndash}}oscillator measures the conviction of a recent price action and the likelihood that it will continue.
* [[Stochastic oscillator]]{{spaced ndash}}close position within recent trading range.
* [[Trix (technical analysis)|Trix]]{{spaced ndash}}an oscillator showing the slope of a triple-smoothed exponential [[moving average]].
* [[Vortex Indicator]]{{spaced ndash}}an indicator used to identify the existence, continuation, initiation or termination of trends.

===Volume-based indicators===
* [[Accumulation/distribution index]]{{spaced ndash}}based on the close within the day's range.
* [[Money flow index]]{{spaced ndash}}the amount of stock traded on days the price went up.
* [[On-balance volume]]{{spaced ndash}}the momentum of buying and selling stocks.

===Trading with Mixing Indicators===
*[[MACD]] & [[Average directional index]]
*[[MACD]] & Super Trend
*[[MACD]] & [[Moving average]]
*MACD & RSI
*MACD & Moving Averages