MACD system shows price movements using two moving average lines. Best buy signals occur when prices are well below zero line. MACD histogram provides earlier trend reversal signals. Weekly signals are more important than daily ones
Markets exist in multiple time frames simultaneously. Trends can be primary, intermediate, or short-term. Longer time frames provide more reliable signals
Support levels indicate where prices won't fall due to demand concentration. Resistance levels show where prices won't rise due to supply concentration. Technical analysis uses these levels to identify optimal buying and selling points
Fibonacci was an Italian mathematician born in 1170. He studied mathematics in Bugia and learned about Hindu-Arabic numeral system. Fibonacci sequence starts with 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610
Double top is a bearish reversal pattern after two consecutive high prices. Pattern requires confirmation with break below support level equal to lows. Consists of upswing, initial peak, trough, second peak, and neckline
RSI measures security's price changes and detects overbought/oversold conditions. Developed by J. Welles Wilder Jr. in 1978. Displays on 0-100 scale as oscillator