Technical Analysis Articles
Illuminating Trends: An Intro to Japanese Candlestick Charting
August 2002 by Wayne A. Thorp
In order to draw candlestick charts, you must have open, high, low, and close price data. Without open prices, it is impossible to create true candlestick charts. Read more »
When Nothing Says Something: Understanding Price Gaps
May 2002 by Wayne A. Thorp
The size of a gap in trading can provide an indication as to future price activity. The wider the gap, the less apt prices are to follow through in the direction of the gap. Read more »
Deciphering the Trend: It’s All a Matter of Perspective
May 1995 by Richard Evans
Nearly every investor has heard of that venerable stock market saw, “The trend is your friend.” It makes sense. The trouble is, though, for most investors, deciphering the trend is often an effort in futility. However, it does not have to be so, as trends have identifiable characteristics, patterns that repeat time and time again. Read more »
At Hand Once Again: The Season to Consider the January Effect
September 1994 by Richard Evans
With the market approaching the last quarter of the year, one of the most widely discussed anomalies of the stock market, the January effect, is once again fast approaching. While just how useful the January effect is for the individual investor will probably remain hotly debated in some quarters, my own work as well as other studies show that the January effect, if taken in the proper context, is a factor that investors can and should exploit. Read more »
Technical Clues From An Uncommon Source: The Dow Jones Utilities
July 1994 by Richard Evans
The Dow Jones utilities average is generally not considered one of the basic barometers of the stock market. While the industrials and transports are barometers in that their price action reflects the ebb and flow of future earnings, the regulated growth characteristics of the utilities lessen their significance as an overall barometer of future business activity. Read more »
An Investor’s Roadmap for Finding and Buying Low-Priced Stocks
May 1994 by Richard Evans
‘Buy low, sell high’ is the time-honored proverb of investing. Investors who wind up ahead of the game have successfully bought low enough often enough, while investors who wind up out of the game have bought high and sold low once too often. Read more »
The Market Timing Approach: A Guide to the Various Strategies
May 1994 by Joseph Ludwig
Over the past few years the application of market timing by individual investors, as well as registered investment advisers, has accelerated rapidly. Contributing to the growth of timing has been the proliferation of computer capabilities, the availability of data, and the growth of mutual funds. Read more »
Two Technical Analysis Rules Pass Academic Muster
July 1993 by Richard Evans
Technical analysis has long been looked down upon in many influential circles. Academicians publish countless articles “proving” that technical analysis lacks merit. Technical analysis has also not been highly thought of by modern Wall Street analysts trained at the leading business schools, and skeptical journalists have not exactly been favorable to technical analysis, either. Read more »
Chart Basics Using Bars, Point & Figure and Candlesticks
April 1993 by Richard Evans
Technical analysis today comes to us under various and sundry names and disguises, ranging from the granddaddy of technical analysis, Dow’s theory, to a plethora of more exotic forms. However, in its simplest form, technical analysis is the study of the market action itself. Read more »
Dow’s Theory and the Averages
January 1993 by Richard Evans
Charles H. Dow will always hold a unique position in the history of the financial markets. He was one of the preeminent journalists of his day, as co-founder of Dow Jones & Company, and the first editor of The Wall Street Journal and later Barron’s. He also devised the first index to measure the trend of the market and penned some basic principles of stock market behavior—known as the Dow Theory—that laid the foundation on which much of technical analysis is based today. Read more »
