What is technical analysis?

Thursday, December 30, 2010 by lemonna ·

There are two opposite trend in the financial markets, bulls and bears market. Bulls pushed the price and bears push down the price.Technical analysis is to study the past price and volume market data to forecast the future trend is bullish or bearish,( the price will go up or go down).
There are many popular technical indicators such as SMA(Simple Moving Average).EMA.(Exponential Moving Average).MACD(Moving Average Convergence/Divergence).MACD-Histogram, RSI(Relative Strength Index),Stochastic, Williams %R, Accumulation/Distribution are widely used by traders, particularly day traders, most long term traders use fundamental analysis to buy stocks.

 

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About this blog

I am a day trader. I think Day trading is more profitable than long term investment.For daytraders, there is one thing should always to remember- set a stop loss. In my first year in trading, I wasn't care about the stop loss,I lost a lot of money and I re-studied, watched and paper traded again.Then I made big profit return in my next two years.
Technical indicators is definitely a necessary tool for day traders and easy to learn, so I here to share my experience and provide you useful stock resource and online stock trading tips.
How do I trade:
Normally, I use combination of technical indicators such as MACD,slow stochastic, RSI,Moving average to pick the stock I want. I like to trade stock with support and resistance, or the stock with MACD and Slow Stochastic Divergence.