by Chris Blanchet

Beginning investors who want to learn stock market investing techniques will gain a competitive edge by digging into the different types of technical analysis patterns and indicators. While technical analysis is never enough as on its own, it can certainly give investors an indication as to whether they should buy or sell stock.

Although there are literally hundreds of different technical analysis measurements, the three discussed here are among the most reliable formation that investors will cross. It makes the most sense to discover them as soon as possible when one starts to learn stock market investing techniques:

Head-and-Shoulders. Long considered the strongest technical indicator, a head-and-shoulders formation provides a very reliable trend indication as to whether to buy or sell a position in the stock under consideration. A head-and-shoulders top pattern has three sharp high points, created by three successive rallies, with the second rally reaching a …

by Chris Blanchet

When it comes to security price momentum, many people will look at the general trend of a security without fully understanding the technical basis of the term. What Momentum really tells us, however, is whether the trend will continue or reverse. Without technical analysis and events like Momentum, many investors would buy high and sell low.

What Is Momentum Similar to the Moving Average Convergence-Divergence (MACD) oscillator, Momentum measures how much a security’s price has changed over a given time. With a understanding of technical analysis and this particular event, investors will understand whether a slight pull back in price is part of the normal fluctuations of stock prices or if it is indeed a bearish signal for the price.

In other words, Momentum allows investors to see the true strength of particular price trend. When relying on multiple technical analysis tools in conjunction with Momentum, investors are …

by Chris Blanchet

People who want to learn stock market investing techniques are best served by getting as much knowledge of the available technical analysis tools. As a stand-alone investment strategy, technical analysis will never be sufficient. However, it can provided enough statistical data to allow the investor to determine whether to enter or exit a position.

Although there are literally hundreds of different technical analysis measurements, the three discussed here are among the most reliable formation that investors will cross. It makes the most sense to discover them as soon as possible when one starts to learn stock market investing techniques:

Head-and-Shoulders. Long considered the strongest technical indicator, a head-and-shoulders formation provides a very reliable trend indication as to whether to buy or sell a position in the stock under consideration. A head-and-shoulders top pattern has three sharp high points, created by three successive rallies, with the second rally reaching …

It looks like the other shoe dropped this week. Just when everyone thought that we may have heard the last of the financial sector’s woes, more bad news hit the wires. The question is how many more shoes are left?

For a time, the market could shrug off negative news. Starting last week, the market was oversold and there was just too much negative news from the banks for it to ignore. However, for the time being, the bulls have held the line. Although there is still strong evidence to indicate a market bottom was established in November, that does not mean one should stay married to that opinion should conditions change.

The question that is constantly asked is “will there be a retest of the November lows?” The breaking of support this past week on all of the major indexes (8500 on the DJIA, 850 on the S&P 500, and 1500 …