TradeAlmanac
Sign in

Technical analysis: what it can and cannot do

The candle, levels, moving averages, volume and overbought indicators — what each one actually measures and where its applicability ends.

7 steps · about 65 min · free

  1. 1Candlestick charts: what a single candle showsWhat a single candle shows.Article
  2. 2Support and resistance: why they sometimes workWhy they sometimes work.Article
  3. 3Moving averages: smoothing rather than a signalSmoothing, not a signal.Article
  4. 4Overbought indicators: what they actually measureWhat the indicator really measures.Article
  5. 5Trading volume: the only dimension besides priceThe only measurement besides price.Article
  6. 6Average True RangeHow far the security usually travels in a day.Glossary term
  7. 7The limits of technical analysisThe limits of the method, stated plainly.Article