Strongest Signal in Technical Analysis
MACD Histogram Divergence

Alexander Elder describes the divergence between the peaks and bottoms of share price and the MACD Histogram as the strongest signal in technical analysis. According to him, this powerful signal only occurs once or twice per year on a daily chart. 

When to Get In, When to Get Out

For 50 years, Technical Analysis of Stock Trends has remained the bible on technical stock analysis. Considered by many professional traders to be an essential study guide on technical analysis, this universally acclaimed classic provides a comprehensive explanation of every aspects on technical trading.

According to the book, there are 3 types of tactical operations: (1) Getting into new commitments; (2) getting out of commitments which have moved as expected and show a profit; and (3) getting out of commitments which have not moved as expected, whether the transaction shows a profit or loss.

Symmetrical Triangles - How To Use A Scoring System to Trade Profitably

From the author of the Encyclopedia of Chart Patterns comes his latest work, Trading Classic Chart Patterns, a groundbreaking primer on how to trade the most popular stock patterns.

By using a simple scoring system, you’ll learn how to predict the performance of a chart pattern.

How To Use Support and Resistance To Improve Your Trading Performance

Support and resistance are like a floor and ceiling, with prices sandwiched between them. A ball hits the floor and bounces. It drops after hitting the ceiling. Understanding support and resistance is essential for understanding price trends and chart patterns. Rating their strength helps you decide whether the trend is likely to continue or to reverse.

How To Use Technical Indicators

The indicators we are about to discuss represent the choice of one trader. I call this approach "five bullets to a clip". An old army rifle used to take five bullets, and I analyse markets using no more than five indicators. If five do not help, 10 will not do any better because there probably is no trade. I offer you this list as a starting point for selecting your own bullets. Pay attention to the general principle of selecting indicators from different groups to focus on different aspects of crowd behaviour. The key idea is to select a few core tools that fit your style of analysis and trading.

Nine Golden Rules for Developing A Trading System

Perry Kaufman, a leading futures expert highly respected for his years of experience in research and trading, shares with you his 9 golden rules for developing a mechanical trading system.

Understanding Candlesticks

In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation.

Chart Reading using Stage Analysis

Just as a picture is worth a thousand words, a stock chart will often tell you more than what is published in the financial statements. One glance is often worth a thousand earnings forecasts, and as such successful investors and traders never buy a stock without checking the chart.

Just remember this basic fact: any stock has to be in one of the 4 market stages, and the trick is to be able to identify each one.

Common chart patterns

(1) Cup & Handle (2) Dead-Cat Bounce (3) Head & Shoulder Top

Chart patterns are useful tools to identify potential investment opportunities. Learn how to identify and interprete a Cup & Handle, Dead-Cat Bounce and Head & Shoulder Top.

Common chart patterns

(1) Double Bottom (2) Ascending Triangle (3) Flag

Chart patterns are useful tools to identify potential investment opportunities. Learn how to identify and interprete a Double Bottom, Ascending Triangle and Flag.

Fibonacci: The man & the markets

Ten Laws of Technical Trading

John Murphy draws upon his thirty years of experience in the field to develop ten basic laws of technical trading. These precepts define the key tools of technical analysis and how to use them to identify buying and selling opportunities. The following are John's ten most important rules of technical trading: