Description of Technical Analysis terms and charts

Do Surges In Volatility Precede Market Reversals?

October has often been referred to as the most horrible month for stocks, and this past October was no different.  We saw tremendous losses across all global markets; not to mention gut wrenching volatility that made even the most seasoned investors uneasy.   This extreme volatility was the aspect of the past month that was most interesting to me and it was interesting to learn that there have been previous instances of volatility that were

Read more

Make Money: Technical Analysis Strategies

In my last technical analysis post moving averages and technical analysis, I ended by promising to show you how investors use technical analysis to make money in the stock market. That is a tall order! First, let me tell you that there are many technical analysis strategies and indicators that traders use to make money in the stock market. In this post I will go through the basics of two distinct

Read more

Is Encana Turning Around?

With the Resources sector taking a recent drubbing, I set out to find a strong company that had been beaten down to invest a small amount of money in as a rebound or turnaround play.  One of the best investment ideas that I have found is Encana (ECA). *Please note that this chart is in Canadian Dollars (CDN).   As you can see by the 6-month chart, Encana (ECA) appears to have leveled

Read more

The 50-Day Moving Average

A great article at Investors Business Daily outlines a buying strategy using the 10-week moving average (50 Day Moving Average). They suggest that institutional investors (Hedge Funds, Mutual Funds, Pension Funds etc.) may make purchases as the stock pulls back to the 50 Day Moving Average. Indeed, any time a stock rebounds from its 10-week or 50-day moving average, it can be just as opportune a time to buy as

Read more