Module III·Article II·~1 min read

Technical Analysis

Analysis and Valuation

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Technical Analysis

Technical analysis
Candlestick patterns Japanese candlesticks (open, close, high, low for the period)
Chart patterns (head and shoulders, double top/bottom, triangles) patterns showing reversals (head and shoulders, etc.)
Support and resistance levels where price bounces down (support) and up (resistance)
Trend lines lines connecting lows (uptrend) or highs (downtrend)
Moving averages (SMA, EMA, WMA) average price over a period (smooths fluctuations, shows trend)
RSI (Relative Strength Index) index 0-100, shows overbought (>70) or oversold (
MACD (Moving Average Convergence Divergence) two moving averages and their difference (trend signal)
Bollinger Bands corridor around the average (bounces at the edges indicate extremum)
Fibonacci retracement levels at 23%, 38%, 50%, 61% pullbacks from a move (magical levels)
Volume analysis trading volume analysis (high volume = strong move)
Momentum indicators indicators of move strength (speed, price acceleration)
Oscillators indicators oscillating between top and bottom (RSI, Stochastic)
Ichimoku Cloud Japanese method with a support/resistance cloud
Elliott Wave Theory waves 1-5 up, then 3 waves down (controversial, but popular)
Dow Theory basics: trends, volume confirms trend, three types of trends (primary, secondary, minor)

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