Novice Traders’ Notebook

Many of our readers have suggested that a brief explanation of some of the concepts and tools of technical analysis would be useful to novice traders in helping them improve and expand their trading knowledge. With that in mind, we introduce the Novice Traders’ Notebook, an ongoing and continually broadening series of topics explained in concise terms with clear visual examples. Make your comments and suggestions to editor@traders.com.

Select a topic to review...

Cardinal Reversal Patterns

At Tops
  1. The Double Top
  2. Head-and-Shoulders
  3. Rounding Top
  4. Ascending Top
  5. The Triangle
  6. Broadening Top
  7. Complex Top
At Bottoms
  1. The Double Bottom
  2. Head-and-Shoulders
  3. Rounding Bottom
  4. Descending Bottom
  5. Triangle Bottom
  6. Broadening Bottom
  7. Complex Bottom

Other Reversal Patterns

  1. Right-Angle Formations
  2. Diamond Formations
  3. Wedge Formations
  4. One-Day Reversals

Charts

  1. Reading Charts
  2. Daily and Weekly
  3. Candlesticks

Indicators

  1. Moving Averages — Signals
  2. Moving Averages — Periods
  3. Bollinger Bands
  1. On Balance Volume
  2. Momentum
  3. MACD