Technical Analysis Explained

Stock Market For Beginners:

Technical Analysis Explained.

The game of day trading or online stock trading is compromised of psychological discipline, technical analysis indicators and in part fundamental analysis.

Even though 90% of the game is mental, the 10% of technical analysis is important to a day trader’s success.

Fundamental analysis has decreased in popularity because of the ease with which it can be manipulated, but we’ll let you make the decision yourself on the weight you place on fundamental analysis.

Here is a detailed read on the differences between Fundamental and Technical Analysis so you can make an informed decision on what form of analysis you want to focus on.

During the lesson on market language, we examined fear and greed, using candlesticks and discussed how one can identify the greed or the fear in the market or a stock.

Below we will examine how a fear or greed candle is formed and what the stock market psychology represented by the candle is telling us.

The two bars above represent absolute power by the Fear market traders (A short or stock selling opportunity) and the Greed market traders (A long or stock buying opportunity).

Complete or absolute FEAR is represented by a solid colored red bar with no tail or wicks on either ends of the bar

Complete or absolute complete GREED is represented by a solid colored green bar with no tail or wicks on either ends of the bar.

Stock Market for Beginners : Technical Analysis Explained

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