Technical Analysis Basics?

Question

Hello

What topics in TA should I familiarize myself with to start out?
I'm still trying to get the big picture of how things fit in.
Any ideas where I can get good info?

thanks

Answer 1

I can recommend a book for you. "Technical Analysis of the Financial Markets" John Murphy. The very simplest concept in technical analysis is the moving average. 50 day and 200 day averages are used very frequently. When a stock is above the 50 and the 50 is above the 200 that is considered bullish. When the stock crosses the 50 or 200 and when the 50 crosses the 200. Depending on the direction, that is either very bullish or very bearish.

Here is a site to visit:

http://www.stockta.com/

Answer 2

The basic concepts of technical analysis in any trading market remains same. You may check about this at http://www.forexabode.com/technical-analysis/indicators/ but for the ready reference, the following are the ways technical analysis is done:

1) Technical indicators like Ichimoku cloud, MACD, moving averages etc.

2) Pure price-action analysis using the past supports and resistance levels and also the number psychology.

3) Trading tools: For example pivot points etc.

4) Trend-lines and common chart patterns.

As far as technical indicators are concerned, there are tons of indicators. However, one should not try to use a lot of those. it is always better to use only a couple of most commonly used ones. Cross-checking one indicator's signals with another is also something which should not be done frequently. Make it simple is the name of the game, otherwise it only can create confusion and confusion only results in failures.