What does the behavior of the relative strength index within a trend tell you about the strength of the trend? While one common method uses divergence between the relative strength index (RSI) and price, we can go beyond that and find out if a trend is likely to continue. We can do so by looking at certain RSI levels contained in a trend; this provides us with valuable information for making trades within the current trend. Watching for breakouts of these RSI levels can also provide us with confirmation for what is happening with price. Read on to learn more...
Average or extraordinary, “true range” is often referred to in stocks and commodities trading. But what is it?
Support and resistance are basic tools used by traders to identify key reversal areas. Here’s a look at the basics of support and resistance levels and how to determine which levels might be important in the future.
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Technical analysis focuses on market action — specifically, volume and price. Technical analysis is only one approach to analyzing stocks. When considering which stocks to buy or sell, you should use the approach that you're most comfortable with. As with all your investments, you must make your own determination as to whether an investment in any particular security or securities is right for you based on your investment objectives, risk tolerance, and financial situation. Past performance is no guarantee of future results.