Basics of Technical Analysis
Uses price patterns to predict markets
What is technical analysis?
Number of shares traded
What is market volume?
Buying or selling against the crowd is known as this type of opinion.
What is contrarian opinion?
These charts show price movement using rectangular “candles.”
What are candlestick charts?
What is Dalton's last name?
What is Hix?
Theory about market trends moving in stages
What is the Dow Theory?
Advancing vs declining stocks
What is the advance/decline ratio?
This type of trading involves unusually small transaction sizes.
What is odd-lot trading?
These levels act as price floors and ceilings.
What are support and resistance levels?
The main data technical analysts study
What are market prices?
Measures overall market strength
What is breadth of the market?
High levels of this can indicate bearish sentiment in the market.
What is short interest?
This pattern signals a potential reversal with three peaks, the middle being highest
What is head and shoulders?
Compares a stock to the overall market
What is relative strength?
Tracks small price movements (up/down)
What is the tick?
Strategy of doing the opposite of most investors
What is contrarian investing?
Pattern with narrowing price range
What are triangles?
Opposite of technical analysis
What is fundamental analysis?
Shares sold but not yet repurchased
What is short interest?
Odd-lot traders are often considered this type of market participant.
What are small or individual investors?
This continuation pattern looks like a small rectangle after a sharp move.
What are flags and pennants?