SOME OF THE INDICATORS USED IN TECHNICAL ANALYSIS

Support & Resistance
Is the level of security prices moving between bullish (uptrend) and bearish (downtrend). Bullish pushing prices up, and bear down. Pointer prices basically move shows how far the price moves up or down.

Support and Resistance Levels
Support is a price resistance level below the current market price, where buying interest should be controlled pressure sales and keep prices from falling.

Resistance is the price level of resistance above the current market price, which should be strong enough selling pressure to control the pressure in order to purchase and maintain not too high.

When investors expect a change, they often do with a sudden. Note: The breakout above the resistance level is accompanied by a significant increase in volume.

The development of support and resistance levels is probably the most significant events and measurable on the price chart. Penetration levels of support / resistance can be triggered by fundamental changes above or below investor expectations (eg, changes in revenue, management, competition, etc..) Or by a self-fullfilling prophecy (investors buy when prices rise). The cause is not as significant as the effect of new expectations lead to new price levels

Supply and demand
There is nothing mysterious about support and resistance: a classic supply and demand. Recalling the class 'Econ 101', the line supply / demand suggests that supply and demand will be at a given

The line shows supply quantity (eg number of shares) which the seller would take action at a given price. When prices rise, quantity sellers also increases the time that many investors want to sell at the highest price. The line shows the number of shares which demand buyers want to buy at a given price. When prices rise, quantity buyers declines when it is so few investors are willing to buy at a high price

At a given price, chart supply / demand shows how many buyers and sellers. In the open market, this line varies periodically. Investors' expectations may change and prices indicated between buyers and sellers make sense. Breakout above resistance level is evidence of upward shift in the demand line where more buyers want to buy at high prices. Same with the failure of support level indicates that the supply line has turned downward

The foundation of the technical analysts by the concept of supply / demand. Chart prices for financial instruments give us a better vision for this activity.

Traders' remorse
Following the penetration level of support / resistance, it is common for traders to question the latest price level. For example, after the breakout above the resistance level, buyers and sellers can question the validity of the new price and decided to sell. This creates a phenomenon called "traders' remorse" where prices return to the levels of support / resistance following the breakout price.

Price action for the period of remorse is crucial. 1 of 2 things can happen. Is it the consensus of expectations which can not be guaranteed new price, in which case prices will move back to the previous level, or investors will accept the new price, in which case prices will continue to move in the direction of penetration. If you follow the trader's remorse, the consensus expectation for a higher price is not guaranteed, "bull trap" (or false breakout) created a classic.

The same sentiment created a bear trap. Prices fall below support levels are very long so that the downtrend is reduced (or sell short) and then bounce back above the support level leaving the downtrend.

The best way to quantify expectations following a breakout is to associate the volume with a price breakout. If prices through the level of support / resistance with a large increase in the volume and period traders' remors relatively low volume, indicating expectations will occur (minority investors would be wrong to act).

Conversely, if the breakout on moderate volume and the period of "remorseful" is in the level of improvement, suggesting little investor expectations change and return to the original expectations. Resistance becomes support. When a resistance level is successfully penetrated, that level turns into a support level.

Resistance Becomes Support
One of two things will happen when the price of the financial instrument approached the level of support / resistance. On the one hand, it can react as a reversal point. In other words, when the stock price fell to the support level, the price will go back up. While on the other hand the level of support / resistance will move back during penetration.

For example, when the market price falls below the support level, the previous support level will be a resistance level while the market then returned to previous levels

TREND LINES
The concept of trend is very essential to the technical approach to market analysis. All of the devices used by the chartist-level support and resistance, price patterns, moving averages and trend lines, and so on-have basic purpose in helping to gauge the market trends for the purpose of participating in the trend.

Trend Lines: Uptrend and Downtrend
TREND HAVE 3 DIRECTIONS
Most people always think the market is always on the uptrend or downtrend. The fact is that the market moves in 3 directions: up, down, and flat. This distinction is very important known that at least at the third, moving prices flat or flat. Type of flats reflects the balance period the price level where the power supply and demand in a relatively stable condition. It defines the trend sideways movement (sideways trend) as a trendless market.

Type of change is not constant always, based on news and rumors. Changes such as this will create a trap in bullish or bearish market.

There are three decisions in the face of the trader - whether to long (buy), short (sell) or not doing anything on the market. When markets go up, purchasing strategy is recommended. When falling, the second approach is appropriate. Nevertheless, when the market is moving sideways, the third option-out of the market is usually a wise decision.

You can see a graph, by changing the day, or a week as a time frame, chartist should decide the direction and duration of the trend. The market made up of different types of trends, and the introduction of this trend will largely determine the success or failure of long-term investments / short.

Moving Averages
Moving Averages are one of the technical indicators are the most versatile and commonly used, because of the way the formation and the fact that it is very easy to calculate and test. Moving Averages are the basis for many trends mechanical systems. Basically follow the market trend, therefore only tells us the trend that occurred after the fact.

Moving Average, MA
To determine the movement for 50 days at closing prices, the price for 50 days backward added up and the total divided by 50. The term mobile / moving is used because only the price for 50 days used in the calculation, therefore the body of the data averaged moves forward each new trading day.

Note, the moving average can not be calculated before has data period "n". For example, we can not show you a 50-day moving average before the 50th day of the chart.

Averages Moving averages are the most common day of 20,30,50,100 and 200. Each Moving Average provides a different interpretation of what will be the price instrument. Not always only one time frame. Moving Averages with a time span varying tell a different story. The shorter the time span, the Moving averege sensitive to price changes. The longer the time span, less sensitive or softer Moving Average. Moving Averages are used to confirm the direction of the trend and the softness of the price and volume fluctuations or "noise" that can confuse interpretation.

Some types of moving averages in the chart:

    Simple Moving Average (SMA)
    Exponential Moving Average (EMA)
    Smoothed Moving Average (SMMA)
    Linear Weighted Moving Average (LWMA)

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