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Technical Analysis

Technical events occur when recognizable patterns appear in a stock's price chart. Technical analysis of a chart attempts to determine the direction, strength, and duration of the trend in order to forecast the most profitable moment to execute a trade. Trend lines rarely move in completely straight lines. The wavering or zigzagging of a trend line forms various chart patterns. Common patterns have been given names which roughly describe the shapes they make on a chart.

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What is Recognia?

The technical analysis charts on Fidelity.com are provided by Recognia, a recognized third-party leader in the field of chart pattern recognition. Recognia's pattern recognition technology can recognize patterns in price charts.

Note that technical analysis information is provided by Recognia, an independent third party, not by Fidelity. See Important Information Regarding Third-Party Content for more information.

What does the Technical Analysis page show?

For a stock, the Technical Analysis page shows a chronological list of technical events, such as the formation of classic or short-term chart patterns and moving averages. Clicking the event names let you view event descriptions, event details, and Recognia charts that overlay the pattern on a stock price chart.

The Technical Analysis page displays a summary of technical events that can be narrowed to focus on a specific trading horizon:

Within each time horizon, technical events are listed chronologically and include event name, class, opportunity (bullish or bearish), price at close, and target price range. Click the event name to see further details.

Note: If the name of the technical event is followed by a "W", the event was found for a weekly price chart instead of a daily price chart. The Events table also indicates the price period in which the event was found.

What are the different types of chart patterns?

Patterns are grouped into four classes: