Technical analysis, explained.
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Moving averages.
Lines that smooth price so the trend is easier to see. Each one trades speed for smoothness differently.
Simple moving average
The average of the last few closes, drawn as a line. The starting point for every other average.
Read the guideExponential moving average
Weights recent prices more, so it turns sooner than a simple average.
Read the guideHull moving average
Built from weighted averages to cut lag while keeping the line smooth.
Read the guideArnaud Legoux moving average
A bell-curve weighting that balances smoothness against speed.
Read the guideMcGinley Dynamic
An average that adjusts its own speed to follow price more closely.
Read the guideMomentum and trend.
How strong a move is, whether it looks stretched, and when a trend may be turning.
Relative strength index (RSI)
A 0 to 100 oscillator comparing recent gains with recent losses.
Read the guideMACD
The gap between two moving averages, with a signal line and histogram to show shifts in momentum.
Read the guideStochastic oscillator
Where the close sits in the recent high-low range, from 0 to 100.
Read the guideAverage directional index (ADX)
Rates how strong a trend is from 0 to 100, without saying which way.
Read the guideParabolic SAR
Dots that trail price and switch sides when the trend reverses.
Read the guideIchimoku Cloud
Five lines that show trend, momentum and support or resistance together.
Read the guideVolatility and volume.
How much the market is moving, and how much buying or selling sits behind the move.
Bollinger Bands
Bands either side of an average that widen and narrow as volatility rises and falls.
Read the guideAverage true range (ATR)
The average size of each bar’s full range, gaps included. Often used to size stops.
Read the guideMass index
Watches the high-low range widen and contract to flag possible reversals.
Read the guideAccumulation/distribution line
Combines where each bar closes with its volume to track buying and selling pressure.
Read the guidePrice action and patterns.
Reading the chart itself: levels, ratios, candles and the shapes price tends to make.
Support and resistance
Price levels where buying or selling has stopped a move before.
Read the guideFibonacci retracement
Ratio-based levels traders watch for pullbacks within a trend.
Read the guidePivot points
Levels calculated from the previous period’s high, low and close.
Read the guideCandlestick patterns
What single candles and short groups of candles can show about buyers and sellers.
Read the guideHeikin-Ashi
Averaged candles that filter out noise so trends are easier to follow.
Read the guideHead and shoulders
A three-peak reversal pattern, confirmed by a break of its neckline.
Read the guideDouble top and double bottom
Two failed tests of the same level that can signal a reversal.
Read the guide