MarketClub Review
Top 50 Trending Stocks


Penny Stocks
Stocks under 1
Stocks under $2
Stocks under $3
Stocks under $4
Stocks under $5
Stocks under $10
Stocks under $15
Stocks under $20
Daily Hot Stocks
Best Penny Stocks
Penny Stocks to Watch
Penny Stocks to Buy
OTC Stocks
Pink Sheet Stocks
Dollar Stocks


NYSE Stocks
AMEX Stocks
Most Active Stocks
Most Active Penny Stocks
Stock Earnings Calendar

Technical Stock Screeners

Technical Stock Screener
MACD Screener
Candlestick Screener
RSI Stock Screener
Stochastic Stock Screener
Moving Average Stock Screener
Volume Stock Screener
Stock Price Screener
Bollinger Bands Stock Screener
Oversold Stocks
Overbought Stocks
Stock Screener
Penny Stock Screener
Best Dividend Stocks
High Dividend Stocks
Dow Jones Stocks
Small Cap Stocks
Large Cap Stocks
Mid Cap Stocks
Micro Cap Stocks
Blue Chip Stocks
Top Penny Stocks
List of Penny Stocks
Penny Stocks List
Stocks To Watch
Stock Market Simulator
ASX Stock Screener
Forex Screener

How To Trade Technical Analysis

Before studying the actual techniques used in technical analysis, we must first understand what technical analysis is. We will also distinguish the differences between technical analysis vs. fundamental analysis.


Technical analysis is the study of past market data, through the use of charts, to predict a stock's future price. Technicians believe that anything that affects a stock price is reflected in the stock's price. Thus, if everything is already reflected in the market price, then we only need to study market prices. Just by studying price charts, you are indirectly studying the fundamentals of a company and whether the psychology of the marketplace for that company is bullish or bearish. For example, if prices are going up, we assume that demand must be exceeding supply, indicating that the fundamentals are bullish. If prices are falling, we assume that supply must be exceeding demand, indicating that the fundamentals are bearish.


An assumption of technical analysis is that history repeats itself. Because chart patterns have worked well in the past, we assume that they will continue to work well in the future.

With that understanding, the purpose of trading using technical analysis is to identify trends in their early stages so that you can trade favorably in the direction of those trends until it shows signs of reversing.


While technical analysis does not focus on the factors affecting the stock price, fundamental analysis does. Employing fundamental analysis includes studying a company's financial statements and earnings to determine a company's intrinsic value, or its actual worth. If the intrinsic value of a company is less than its market price, then the stock is overvalued. Similarly, if the intrinsic value of a company is greater than its market price, then the stock is undervalued and should be bought.


To sum up, trading using fundamental analysis studies the causes of market prices while trading using technical analysis studies the effect. As technicians, we believe that we do not need to know the reasons why the market moves since those reasons should already be reflected in market prices.


Many traders consider themselves as either fundamentalists or technicians. However, there are overlaps and some traders do study both methods. For our trading purposes, we are going to focus more on technical analysis techniques and tools.