Learn Technical Analysis

Where do I begin if I want to learn about Technical Analysis?

Please review the Recommended Readings section of this site. I’ve posted some very good reading materials on the topic of technical analysis.

It is important to understand terminology related to technical analysis. Throughout this site, I refer to technical “indicators” – a technical indicator is a “tool”, typically a mathematical function or formula, that is applied to a given commodity futures market in order to examine a particular aspect of that commodity market.

Examples of technical indicators include simple or exponential moving averages, Stochastics, Bollinger Bands, Relative Strength Index, Commodity Channel Index, to name a few. There are, literally, hundreds of technical indicators. Many indicators are included with most charting software packages.

There are hundreds of technical indicators used by traders. Inputs for many of technical indicators, such as the time period for a moving average, are easily adjusted by the futures trading. This lets futures traders optimize indicators to suit a particular trading style.

It is important to know that there are different “families” or types of technical indicators used by technical analysts. There are indicators used for trending markets, sideways markets or markets in congestion.

Technical analysts frequently combine a variety of indicators in order to come up with a system that works for them within the confines of their risk tolerance, market exposure or trading time frame.