What is Technical Analysis?

Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipate what is “likely” to happen to prices over time. Technical analysis uses a wide variety of financial charts that show price over time.

Introductions to Investing

• Why Analyze Securities?Examines the three types of market analysts, what they believe about financial markets and why, helping you understand the big picture when it comes to deciding the “best” way to invest

• Asset Allocation and DiversificationDescribes how asset allocation combined with technical analysis can be used to control portfolio risk

• Technical AnalysisExplains what Technical Analysis is, how it works, and the general steps one should take when using technical charts and indicators to analyze stocks. It concludes with a look at the strengths and weaknesses of using charts to make investment decisions

• Fundamental AnalysisDescribes Fundamental Analysis and explains the general steps that a fundamental analyst takes when evaluating a stock. It also looks at the strengths and weaknesses of fundamental analysis

• Intermarket AnalysisExamines the relationships between four key intermarket players: Stocks, Bonds, the Dollar and Commodities. These relationships are then tied in to the business cycle and sector rotation within the business cycle

• Random Walk vs. Non-Random WalkExplains both the Random Walk Theory of financial markets and its counterpart, the Non-Random Walk Theory, and considers how these two competing concepts affect technical analysis

"Must-Read" Technical Analysis Articles

• John Murphy's Ten Laws of Technical TradingJohn's famous ten (eleven actually!) rules that everyone should know about charting and technical analysis

• John Murphy's "Charting Made Easy" eBookAn easy-to-read introduction to Technical Analysis written by John Murphy. It covers all of the basics in John's trademark accessible style

• Technical Analysis 101A short course in the basic tenets of the field, designed to provide newcomers with a working background of technical analysis

The Psychology of Investing

• Irrational Exuberance and Behavioral FinanceDescribes the findings in Robert Shiller's book, Irrational Exuberance. The 12 precipitating factors of the 2000 stock market bubble are detailed as well as cultural and psychological factors influencing the decision making process when investing in stocks

• Cognitive BiasesIntroduces and explains eleven of the most powerful and common cognitive biases faced by both the average individual throughout daily life and investors in today's financial markets

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Strategies, Rules and Guidelines

• Arthur Hill on Goals, Style and StrategyArthur's take on how to approach financial market investing and trading. Another critical article that every StockCharts user should read carefully

• Arthur Hill on Moving Average CrossoversArthur's take on moving average crossover systems - their pros and cons as well as their uncanny ability to “predict the past”

• MulticollinearityHow to avoid having two very similar signals on the same chart

• "The Trader's Journal" by Gatis RozeA collection of short articles by a successful technical trader about his tools, his routines and the lessons he has learned throughout his years in the market

• Bob Farrell's 10 RulesVeteran Wall Streeter Bob Farrell of Merrill Lynch teaches investors to think outside the box with his 10 rules on investing

• Richard Rhodes' Trading RulesThe 18 stock trading rules that Richard lives by. “The rules are simple; adherence to the rules is difficult”

• Donchian Trading Guides20 trading guidelines developed by Richard Donchia, the father of trend following