The literature on technical analysis describes more than a hundred different technical indicators. Each one may depend on one, two, or more parameters. This results in a practically infinite number of combinations and possibilities.
Based on Investtech’s experience with stock analysis since 1997, we have identified five essential indicators. These indicators help us recognise market flows and interpret the psychological changes that investors are subject to.
Investtech’s computer systems carry out daily analyses based on these five indicators. The results are drawn in the charts, used to classify the stock as positive or negative, and used to generate automatic analysis texts.
Trends
The trend is one of the most important indicators of technical analysis. Stocks in rising trends will continue to rise and stocks in falling trends will continue to fall.
Support and resistance
Support and resistance are two of the most central concepts in technical analysis. They are used to find good buy and sell levels.
Formations
Price formations describe the investors’ psychological state and trigger powerful buy and sell signals.
Volume
Volume analysis is strongly underestimated among technical analysts. Volume analysis often gives strong warnings when a stock looks technically positive. It is used to confirm the strength of buy and sell signals.
Momentum and RSI
Momentum has turned out to be a strong indicator of future price development. Technical analysis literature views this differently and it must be used correctly. Investtech has a clear recommendation for use of RSI on the Nordic markets.
Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.
Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.