5 Must-Know Indicators - Technical Analysis For Beginners

Using Technical Analysis Indicators

Technical analysis is a method of examining past market data to help forecast future price movements. Using different tools, indicators, and charts, traders can spot important price patterns and market trends, and then use that data to anticipate a market's future performance.

Technical analysis is based around a market's price history, rather than the fundamental data like earnings, dividends, news, and events. The belief is that price action tends to repeat itself and the patterns can be identified and used to define a market's trend.

Since MarketClub offers a variety of chart studies that can be helpful in your technical analysis, I'd like to highlight several of the most popular technical indicators and how you can use them.

The Moving Average Convergence/Divergence (MACD) Indicator

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What Is The Key To A Successful Portfolio?

Did your Grandmother ever tell you not to put all of your eggs in one basket?

Well it turns out Grandma was right! Grandma knew a great deal about the power of diversification and how it reduces risk in different aspects of your life, and we can relate that directly to trading and investing.

It just doesn’t make sense to trade only one market. There’s just too much risk and too little opportunity. A trader needs to stay flexible, and at the same time be diversified. Before we get into the meat and potatoes of market diversification.

Learn more about Diversification here.

Remember Hewlett-Packard (NYSE:HPQ)?

Once the Apple of its day, Hewlett-Packard (NYSE:HPQ) made some unfortunate decisions that then tanked the stock. After reaching a high of $54.75 on April 16, 2010, the stock of Hewlett-Packard hit a low of $11.35 some 32 months later.

Since that time, the stock has made a recovery into the mid to high 20s, but still has further to go on the upside based on pure technical analysis. Continue reading "Remember Hewlett-Packard (NYSE:HPQ)?"

Remember Groupon?

Yesterday, Groupon (NASDAQ:GRPN) flashed a new red monthly Trade Triangle. I believe this is a significant event for this stock, as it has also broken a long-term nine month trend line and completed a major head and shoulders top.

1.) Green Monthly Trade Triangle at $5.50 on 1/14/13
2.) 9 month long-term trend line
3.) Head and shoulders top
4.) Head and shoulders neckline
5.) Target zone below $6.00
6.) Red Monthly Trade Triangle at $8.60 on 12/02/13
7.) Resistance at the 50 Line on the RSI Indicator Continue reading "Remember Groupon?"

What's Ahead For Gold In 2014?

Today, I'm going to analyze the gold market and in particular the spot gold market, which really drives everything in gold trading.

In 2013, gold turned out to be a real loser for the gold bulls, dropping some 20+ percent on the year and the year is not over with. While equities soared, the gold markets swooned and didn't receive any love from anyone. In fact, many of the big players like Soros, John Paulson and other large hedge fund managers began dumping their GLD ETF holdings just recently, as they too have had enough of the yellow metal's antics. All of this weighed heavily on the price of gold.

Continue reading "What's Ahead For Gold In 2014?"