Market Technical Analysis

This Technical Analysis App identifies trends in various timeframes using pivot points (a.k.a. the peak-and-trough) analysis. The new version also includes the support and resistance analysis. It identifies support and resistance levels (bands) using volumes, average volumes, pivot points, gaps, and major moving average of prices.

The analysis currently supports stocks, ETFs, and indexes.

A peak is defined as the highest price point within a certain time period and a trough is the lowest price point within the period.

When a stock moves up, the pricing action does not go in up a straight line but consists of multiple serious of advances and declines, with the overall moves trending in the up direction. Similarly, when a price comes down, the pricing action does not go down in a straight line but consists of multiple serious of declines and advances, with the overall moves trending in the down direction.

An upward trend is a successfully higher peaks and higher troughs, and a downtrend is a successfully lower peaks and lower troughs. When a higher peak is followed by a lower trough or vice versa, there is no trend in the price movement.

After an uptrend is in place, the subsequent higher peaks and higher troughs confirm the original uptrend. The analyzer gives report on the time and price when the trend is first identified and the number of times the trend is reconfirmed.

Pivot point analysis is also useful in giving an early signal of trend reversal. As a long lasting trend movement enters into a period with no trend, it may be an indication of an end of the bull or bear run.

The App performs pivot point trend analysis in short (daily), medium (weekly) and long (monthly) timeframes. It also performs intraday trend analysis using real time market data when the stock market is open. The trend in one timeframe may or may not agree with the trend shown in another timeframe. When they move in the same direction, it shows high confidence level in the underlying trend. If the results contradict one another, it indicates some hesitancy and uncertainty in the movement.

The analysis can apply on stocks, indexes and ETFs.

In addition to trend analysis, the App also calculates Fibonacci retracement levels and shows them on the last two pivot points. Fibonacci results may not show if the pivot points do not appear to form significant pricing reversal points.

The new (2.0 and above) versions of the app include support and resistance level analysis. In the daily timeframe, the tool gathers information based on trading volume and average volume from the last 30 days, pivot points and gaps from a certain periods from the past as well as some major EMA (exponential moving average) of prices to obtain the support and resistance level of the current price.