Trading Ranges – These can include plotting the highs, lows, closing price, support and resistance levels. These help to find out breakout ranges to see when you have left these ranges or when you can still trade within them. Certain levels can also be found by using Fibonacci retracements to pick certain support and resistance levels.

Pattern Analysis – For this type of technical analysis you can use patterns such as Head and shoulders, triangles, cup and handle or even butterfly patterns. The charts are analysed for specific patterns that have historically appeared in the same stock or product or for common patterns that have been seen in many markets over time.

Trend Analysis – Highly complex and mathematical, trend analysis looks at short and long-term trends and tries to identify crossovers, where prices cross over their long-term averages. The long-term averages are referred to as moving averages, where a price range is smoothed for a period of time by averaging a series of data points and plotting the smoothed line against the actual price line of the stock.

Oscillators Analysis – Oscillators can be used to measure the performance in relation to historical strength. These are lagging indicators looking for times where the market is overbought or oversold. Some of the oscillators are MACD and RSI.

Gap Analysis – This is one of the trading styles that is not well discussed where you are looking for gaps between the close price and the next open price. The gap trader is concerned with the performance of the stock above or below its open, which can indicate further movement in either direction. The movement will usually happen due to news announcements or some other factor but most stocks and other products will have a small difference between the opening and closing price.

common groups of technical indicators