Technical Analysis Basic Education
An introduction to technical analysis, a method of tracking chart patterns to discern price and volume trends, evaluate investments and identify trading opportunities.
![Two women looking at graphs and other data on a computer](https://www.investopedia.com/thmb/lV0833VHlIvIDIWQt9Eww4j8cGw=/5427x2995/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1473508651-3d4f933caf57486ea0412bd4738991f4.jpg)
Relative Rotation Graph: How to Use RRG Charts in Trading
![Donchian Channels: A technical analysis tool used to identify breakout points in price moves.](https://www.investopedia.com/thmb/WmjGyHLANQp8a9zZh3Tm8d36YBw=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/donchian-channels-formula-8415235-final-d00902c4d47a4566934433d97e32dc16.png)
Donchian Channels: Formula, Calculations, and Uses
![](https://www.investopedia.com/thmb/KtEiPQTzL6rrsMbuZStOAnho2Lc=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/activetrading4-5bfc2b9a46e0fb00260170f9.jpg)
Average Directional Index (ADX): Definition and Formula
![Bollinger Band](https://www.investopedia.com/thmb/UFFV3P5-k0Qfvlqm2IXkRvfL2jY=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/bollinger-band-4200502-06f2a74c1c9d471085cf8c2f3a4fc514.jpg)
Bollinger Bands: What They Are, and What They Tell Investors
![Paper Trade](https://www.investopedia.com/thmb/wWt9MiqcsXD31L1FTsFVu3m6aMY=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/papertrade.asp-final-a14ea6706e8b4683815f89e8ec98d511.png)
What Is a Paper Trade? Definition, Meaning, and How to Trade
![](https://www.investopedia.com/thmb/wFx0zObnnezwNOdfcZJXB6uW1oo=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/thinkstockphotos-524858617_copy-5bfc34a946e0fb00517d9f7f.jpg)
Using Bullish Candlestick Patterns to Buy Stocks
![Frong of a grass plant curing into the shape of a Fibonacci spiral](https://www.investopedia.com/thmb/YlrT6mMqQXIbP6C8l6mLJeqC5wU=/6240x4160/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1411521238-25474c9d07a64f029635a22e2957df2c.jpg)
Fibonacci and the Golden Ratio
![New York Stock Exchange Announces Merger With Deutsche Borse](https://www.investopedia.com/thmb/wXpRU6aV6RKJFbAhG3QLrCj04Qo=/3000x2001/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-109134483-d381d6d177d5490891151fc5f8f9979b.jpg)
Notional Value vs. Market Value: What's the Difference?
![Exponential Moving Average (EMAV)](https://www.investopedia.com/thmb/N2zRuN5-zP_-pwFS8byK3EZfm3o=/2119x1415/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-672902028-5327aaa416cd43feb9448a50047af871.jpg)
How Is the Exponential Moving Average (EMA) Formula Calculated?
![Arithmetic Mean](https://www.investopedia.com/thmb/CwPvJplceYKzsnunOj3DzL0AocI=/8000x5400/filters:no_upscale():max_bytes(150000):strip_icc()/arithmeticmean.asp-FINAL-30d44378656948f4ba9d374b208cec88.png)
Arithmetic Mean: Definition, Limitations, and Alternatives
![Average True Range](https://www.investopedia.com/thmb/D6JUVFGGIRhaPNZC6WtqpMdZUBQ=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Average-True-Range-FINAL-90c6d31cebf640b8bfb618a280b842be.jpg)
Average True Range (ATR) Formula, What It Means, and How to Use It
![Bullish Engulfing Pattern](https://www.investopedia.com/thmb/bXTAGRarVG26rZsOab3AG9pGB6A=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/bullishenglufingpattern_color_final_BLUE-a8ade799fa754e738c3f7622c47cd3ee.png)
Bullish Engulfing Pattern: Definition, Example, and What It Means
![Candlestick](https://www.investopedia.com/thmb/Jhiqs9AfpkjSkAVLdpAZfgZozvM=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Term-c-candlestick-25a39ce21cd84c24a71c41610c4aa497.jpg)
Candlestick Chart Definition and Basics Explained
![](https://www.investopedia.com/thmb/jgeyG4O1WCooULfqKNZ5Mhlrsog=/380x253/filters:no_upscale():max_bytes(150000):strip_icc()/117860423-5bfc2b9d46e0fb0051bde381.jpg)
What is EMA? How to Use Exponential Moving Average With Formula
![Fibonacci Retracement Levels](https://www.investopedia.com/thmb/K4Tbg2UKpZD8DtsnT4FkmD1fXZk=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/fibonacciretracement-11f22406636143cbb239331bae819394.png)
What Are Fibonacci Retracement Levels, and What Do They Tell You?
![Head and Shoulders Pattern](https://www.investopedia.com/thmb/gdnThzLAF5QGl5SZQOpUh5ReAaQ=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/head-shoulders-FINAL-08d3bb8f573d4898a371dcf3371b0ecb.jpg)
What Is a Head and Shoulders Chart Pattern in Technical Analysis?
![Ichimoku Cloud](https://www.investopedia.com/thmb/l87SZXdFYsMh1hTJaYGLO6-OA54=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Ichimoku-Cloud-recirc-cedb44f1c68b4a729cbfedbdc4a6e08c.png)
What Is the Ichimoku Cloud Technical Analysis Indicator?
![MACD](https://www.investopedia.com/thmb/FaI3Ervv9yH6pf28zm8fa6jlN9E=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/MACD-14ea798a5cd447dc85417320e9fb1883.png)
What Is MACD?
![Moving Average](https://www.investopedia.com/thmb/qRt6L5ErJNxfr4BXMoA_LJXPKDw=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/MOVING-AVERAGE-FINAL-21674874615f49c19444bbd9d2086c51.jpg)
Moving Average (MA): Purpose, Uses, Formula, and Examples
![On Balance Volume (OBV)](https://www.investopedia.com/thmb/yJ8xCRegAj45rWVbsLj45oFzoj0=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/onbalancevolume-5cbba5cf7165486db56d8c81fa516aa0.jpg)
On-Balance Volume (OBV): Definition, Formula, and Uses As Indicator
![Relative Strength Index (RSI) Indicator](https://www.investopedia.com/thmb/EopzNKCNv0FGhDU0wfa9VbLpSTw=/1080x722/filters:no_upscale():max_bytes(150000):strip_icc()/rsi.asp-final2-ae4bb104bb254cca89e74733ac337a16.jpg)
Relative Strength Index (RSI) Indicator Explained With Formula
![Businessman using graphs on screen](https://www.investopedia.com/thmb/393ZJGyLzRtAfZPz3KqEVIAl4j0=/5245x3934/filters:no_upscale():max_bytes(150000):strip_icc()/SimpleMovingAverageSMA-cd9368992c1142d7ac4063bdfb7c37bf.jpg)
Simple Moving Average (SMA): What It Is and the Formula
![Businessman doing a presentation in a meeting at the office](https://www.investopedia.com/thmb/sxM3ZZOqF5rYoI8f17C0oa9tmiI=/7008x4672/filters:no_upscale():max_bytes(150000):strip_icc()/StochasticOscillatorWhatItIsHowItWorksHowToCalculate-2f4085e83b7c4d73887a83ab7cbc27c5.jpg)
Stochastic Oscillator: What It Is, How It Works, How To Calculate
![Trendline](https://www.investopedia.com/thmb/W7wxb3Ny_ATBACk2Tb-YAr2SFTA=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/trendline.asp_V1-6e45c6a4a8604000b153cefbfba596a4.png)
Trendline: What It Is, How To Use It in Investing, With Examples
![Analyst charts stock growth](https://www.investopedia.com/thmb/4U25nmww1CCiSWORos0H1b06qGw=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/stock_chart_analyst_growth_shutterstock_162272792-5bfc306546e0fb0083c15d92.jpg)
Support and Resistance Basics
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What Is the Arms Index (TRIN), and How Do You Calculate It?
![Investor looking with dismay at his positions on monitor](https://www.investopedia.com/thmb/WTFvfN49PYlJnopPzsP-synV15Y=/3792x2632/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1051870378-e466626e75bb48569bb341ac58fa2205.jpg)
Bear Traps: What They Are and How to Avoid Them in Trading
![Capitulation](https://www.investopedia.com/thmb/jeJ8GOwYZkmpWETTvGxa8pUI1Nc=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/Capitulation_final-5a692dbcb6d54b81b079c8ae573c6f1a.png)
Capitulation: What It Is in Finance and Investing, With Examples
![Dead Cat Bounce](https://www.investopedia.com/thmb/gJU13U_xz3_9AdR4_TeqGy2EPic=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/deadcatbounce.asp-final-715246b1d8ef42758eb6f47aeb27b572.png)
Dead Cat Bounce: What It Means in Investing, With Examples
![Death Cross](https://www.investopedia.com/thmb/blgldktx-Qgr28IioKnOVUSQ8uQ=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Term-Definitions_deathcross-19f963f87d8d4c65833b3f6d20de9fc6.jpg)
Death Cross Definition: How and When It Happens
![Goldencross](https://www.investopedia.com/thmb/QL9HgJnVkSk1HGj714L7gbwCzHA=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/goldencross-1323afb7bf1f412a9bdf0b058710d6e5.jpg)
Golden Cross Pattern Explained With Examples and Charts
![Price Target: An analyst's projection of a security's future price.](https://www.investopedia.com/thmb/cCqVvjywPccoCsIB5YnhHcsxGh8=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/pricetarget.asp-final-16ae544aab0a4c95980ef069cdf29c44.png)
Price Target: How to Understand and Calculate Plus Accuracy
![An investor reviews calculations using laptop and calculator](https://www.investopedia.com/thmb/MzhOae9OBWOc44VkwQbT1TXOSC0=/2332x1286/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-875247422-5a4401cf2ff049289e1edadabfbb8723.jpg)
How to Calculate the Beta of a Private Company
![Financial graphs on computer screen](https://www.investopedia.com/thmb/bjzM6Dj3rvv4BMrH1Rw0EEDB5Ck=/2224x1348/filters:no_upscale():max_bytes(150000):strip_icc()/bar_charts-925316276-f160b7ad0e57417e959a84bbb64dd5b4.jpg)
Bar Chart: Definition, How Analysts Use Them, and Example
![](https://www.investopedia.com/thmb/u6VrRfrC7W_Gf_7u1uLhyaeGLnk=/3296x2132/filters:no_upscale():max_bytes(150000):strip_icc()/wrestling_ap49701541668-5bfc342b46e0fb00260cbe77.jpg)
RSI Indicator: Buy and Sell Signals
![Midsection View of Businessmen Analyzing Charts on Laptop in Office](https://www.investopedia.com/thmb/LOPzV1VFkgM17BKc43tOtC3NaNo=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1128046391-f7d98eff2d3a43219b8bbe32432a0ca5.jpg)
How to Draw Fibonacci Levels
![Bid and ask chart on digital screen](https://www.investopedia.com/thmb/UXj2AX6YLz90Hr4BHc68d2z14ZM=/2120x1414/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-525348438-0cdffe67f1574eb39c2c3b3a949b058e.jpg)
How to Calculate the Bid-Ask Spread
![](https://www.investopedia.com/thmb/bj6aamngt4rn3gmQgLwJ9UCNfsc=/1258x834/filters:no_upscale():max_bytes(150000):strip_icc()/3d_stock_chart_istock_641607690-5bfc307c46e0fb0051bec186.jpg)
Retracement vs. Reversal: What's the Difference?
![Man Calculating Budget With Laptop and Calculator](https://www.investopedia.com/thmb/-ZjNVUOHX4SfCpDI0R_tnpnKp1k=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-157612066-7507d840ceaf4b858272f9850bd1e0a3.jpg)
Simple vs. Exponential Moving Averages: What's the Difference?
![Bull and bear, by sculptor Reinhard Dachlauer, in front of the Frankfurt Stock Exchange.](https://www.investopedia.com/thmb/qcaCftyOYvhkmsSnG9whY35BHgg=/3008x2000/filters:no_upscale():max_bytes(150000):strip_icc()/Bulle_und_Br_Frankfurt-8244e4911f834a0fbef8eb5df08a334c.jpg)
Relative Strength Index vs. Stochastic Oscillator: What's the Difference?
![Closeup image of people sitting at a table, with one person pointing to charts on a laptop screen](https://www.investopedia.com/thmb/395-lObEHEo9r9zWT4tNISCKP8o=/4800x2700/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1453639789-674d4ad2f83241549e7d7085bbd60522.jpg)
Moving Average, Weighted Moving Average, and Exponential Moving Average
![](https://www.investopedia.com/thmb/LhnsGBFR6E4BTaS7IZmt-CS7fg8=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/investing19-5bfc2b8f4cedfd0026c1194c.jpg)
52-Week High/Low: Definition, Role in Trading, and Example
![Accumulation / Distribution Indicator (A/D)](https://www.investopedia.com/thmb/LpTsCMbBoMjB6RgytIEUWa6jnOw=/1500x1003/filters:no_upscale():max_bytes(150000):strip_icc()/Accumulationdistribution-resized-fce7cade32064c8ba3fe2bb7f915d0fd.jpg)
Accumulation/Distribution Indicator (A/D): What it Tells You
![](https://www.investopedia.com/thmb/N_k2cTqcoAm5mj9x93a4kBy0tGY=/380x253/filters:no_upscale():max_bytes(150000):strip_icc()/147688989-5bfc2b9c46e0fb0051bde36d.jpg)
Aroon Indicator: Formula, Calculations, Interpretation, Limits
![Backtesting: Evaluating the effectiveness of a trading strategy by running it against historical data.](https://www.investopedia.com/thmb/x_7v_cCslz4XX_R0sIHqvPhNRPI=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/Backtesting_final-cbc367cefc6f4553b7118a398b5845c2.png)
Backtesting: Definition, How It Works, and Downsides
![Darvas Box Theory: A trading strategy that favors buying into stocks that are trading at new highs on correspondingly high volumes.](https://www.investopedia.com/thmb/SgLz2-nNvKEjtF9De4sEb6kWHOs=/4000x2700/filters:no_upscale():max_bytes(150000):strip_icc()/darvasboxtheory.asp-final-83f92df0d8f74f88bb62ecf779af018e.png)
Darvas Box Theory: Definition and Role of Nicolas Darvas
![](https://www.investopedia.com/thmb/jgeyG4O1WCooULfqKNZ5Mhlrsog=/380x253/filters:no_upscale():max_bytes(150000):strip_icc()/117860423-5bfc2b9d46e0fb0051bde381.jpg)
Descending Triangle: What It Is, What It Indicates, Examples
![Trader looking at charts on laptop and mobile device](https://www.investopedia.com/thmb/UAydxk_r7TT5AXit60ykE_D2MFw=/5908x3939/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-1360504059-f133206201d847feb5c6cf30402df8dc.jpg)
What Is Market Sentiment? Definition, Indicator Types, and Example
![Money Flow Index](https://www.investopedia.com/thmb/t5liSqwo8QtuO676VYrXO5YvJ9U=/1500x1003/filters:no_upscale():max_bytes(150000):strip_icc()/mfi-resized-4edd7b3e094a43e989002d4740d245b2.jpg)
Money Flow Index - MFI Definition and Uses
![](https://www.investopedia.com/thmb/r1ojWPI14SzAl5AhPhTNiM5Btow=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/activetrading12-5bfc2b9b4cedfd0026c11b34.jpg)
Momentum Investment: Meaning, Formula, Controversy
![](https://www.investopedia.com/thmb/ue89-owaHy8FAPxEXszp3-N-UCY=/380x253/filters:no_upscale():max_bytes(150000):strip_icc()/154186232-5bfc2b9c46e0fb005144de15.jpg)
What Oversold Means for Stocks, With Examples
![](https://www.investopedia.com/thmb/jgeyG4O1WCooULfqKNZ5Mhlrsog=/380x253/filters:no_upscale():max_bytes(150000):strip_icc()/117860423-5bfc2b9d46e0fb0051bde381.jpg)
Pivot Point: Definition, Formulas, and How to Calculate
![](https://www.investopedia.com/thmb/ivc58q5kHaztuN6z-tTTqhXF8cQ=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/activetrading6-5bfc2b9a46e0fb00265bed7c.jpg)
Price Rate of Change (ROC) Indicator: Definition and Formula
![](https://www.investopedia.com/thmb/Zbz-65TrdS83BdXRo40Br-lWYQw=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/activetrading16-5bfc2b9ac9e77c005143f30a.jpg)
Resistance: What It Is and How It’s Affected
![Group of people discussing and coming up with new investment strategies in a meeting.](https://www.investopedia.com/thmb/gAqy8q-BeTVBKGy3xvfrQynQWoQ=/8341x5561/filters:no_upscale():max_bytes(150000):strip_icc()/SmartBetaExplanationStrategyandExamples-26eda3b007b54555bbae85ec191efe19.jpg)
Smart Beta: Explanation, Strategy and Examples
![Stochastic RSI](https://www.investopedia.com/thmb/tMcELerxrC5CeXRiCBd8qwSIqoQ=/1500x1000/filters:no_upscale():max_bytes(150000):strip_icc()/Stochastic_RSI_Final_3-2-acdf6be079384154a09239d3073130bb.jpg)
Stochastic RSI -StochRSI Definition
![](https://www.investopedia.com/thmb/r1ojWPI14SzAl5AhPhTNiM5Btow=/205x136/filters:no_upscale():max_bytes(150000):strip_icc()/activetrading12-5bfc2b9b4cedfd0026c11b34.jpg)
What Is the Support Level of a Stock, and How Do You Trade It?
![Jet black crow perches on wooden post and looks down toward ground](https://www.investopedia.com/thmb/BDUw4coRGdumOxMQLxm3P6jYrus=/2114x1418/filters:no_upscale():max_bytes(150000):strip_icc()/varmint.crow-e6b681f065d6492598cf603a8cbe8f67.jpg)
Three Black Crows Definition and How to Use the Pattern
![A investor places an order with their broker after spotting a stock that is breaking out above resistance.](https://www.investopedia.com/thmb/6Nrf6n2rGgq-qDXOr70lVPX3cx4=/7952x5304/filters:no_upscale():max_bytes(150000):strip_icc()/WhatIsaTripleBottomChartinTechnicalAnalysisGettyImages-2032290140-fcfd84140e124f079cfc405a1e555b51.jpg)
What Is a Triple Bottom Chart in Technical Analysis?
![A stock trader working on the floor of the NYSE and analyzing currently over- and under-purchased securities.](https://www.investopedia.com/thmb/ttWKfpKANyaKpBu61UwKCdomOt8=/3000x2000/filters:no_upscale():max_bytes(150000):strip_icc()/WilliamsRDefinition-3bb4f6484f4e494d94db7373c770fda2.jpg)
Williams %R: Definition, Formula, Uses, and Limitations
![](https://www.investopedia.com/thmb/lP16fhhOnAwYv5gbHN_siEf7RdQ=/1258x834/filters:no_upscale():max_bytes(150000):strip_icc()/3d_stock_chart_istock_641607690-5bfc306fc9e77c005144d66c.jpg)
Introduction to the Parabolic SAR
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Time Value of Money: Determining Your Future Worth
![](https://www.investopedia.com/thmb/oXSw__lh4yp0o8YdtmP91_2KhIg=/680x440/filters:no_upscale():max_bytes(150000):strip_icc()/stock_graph-5bfc31de46e0fb0051460125.jpg)
How to Profit From the Bollinger Squeeze
![](https://www.investopedia.com/thmb/bUcWWcOsRR9LgIAiNj3ZlVkxYlY=/285x260/filters:no_upscale():max_bytes(150000):strip_icc()/active-trading-lrg-4-5bfc2b2546e0fb00517bcd33.jpg)
The Difference Between Fast and Slow Stochastics
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Trading Divergence and Understanding Momentum