Technical analysis

Finding Divergences and Hidden Trading Opportunities Successful trading strategies focus on finding indicators that signal trend reversal – usually momentum indicators. However, traders should not disregard other indicator signals such as divergences as these could help identify trend changes earlier and create potentially more lucrative entry and exit points. How to find a divergence Divergences can be invaluable tools in …

Volume Analysis A technical analyst may use volume analysis as one means of gauging the health of an uptrend by tracking changes in trading volumes. Rising markets often experience more trading volume as investors become excited by rising prices continuing their climb upwards. Low volume may indicate a lack of interest in buying and selling shares, potentially signalling bearish trend …

Gann theory is an innovative trading strategy that integrates elements of astrology, geometry, and mathematics. Its strength lies in its ability to anticipate market trends while providing key time cycles and potential turning points. Gann’s theories provide traders with an effective technical analysis tool for identifying support and resistance levels within the market, managing their risk more effectively and increasing …

MACD indicator is one of the most frequently utilized technical indicators by traders and can help create numerous trading strategies. Gerald Appel introduced the Moving Average Convergence Divergence (MACD) indicator into most trading packages and this tutorial covers its fundamental application for use as part of a trading strategy. Here we discuss an example MACD trading plan designed to help …

As a trader, support and resistance levels will help you determine entry points for trades. Unfortunately, these levels can sometimes be difficult to pinpoint. Note that these levels are dynamic. 1. Look for breakouts. An asset’s price experience a breakout when its value shifts beyond or beneath an important level, commonly known as support or resistance. Although these levels do …