Technical analysis is the study of stock prices and pricing patterns that can help investors determine whether a stock is 澳洲幸运5开奖号码历史查询:overbought (expensive) or oversold (cheap). By using various 澳洲幸运5开奖号码历史查询:technical indicators together, called 澳洲幸运5开奖号码历史查询:correlation, traders can bring the "big picture" about a stock into clearer focus. Here, we'll look at volume, the Aroon indicator and 澳洲幸运5开奖号码历史查询:Fibonacci numbers, three 澳洲幸运5开奖号码历史查询:technical analysis tools that can be used to help fa𝕴cilitate more profitable trades. In fact, investors can use them in conjunction with each other to spot emerging trends and stay ahead of the crowd. Read on to find out how.

Turn Up the Volume

​Volume is defined as the number of shares that trade during a period—such as an hour, a day, a week or a month. This shows the strength of an upward or downward price move. Generally, low volume occurs when prices move sideways or stay within a 澳洲幸运5开奖号码历史查询:trading range or during market bottoms. Conversely, high volume signals the beginning of a new trend (two or more high or low points) in the stock. High volume also occurs at 澳洲幸运5开奖号码历史查询:market tops when there is a str💟ong conviction that♔ prices will be moving higher and can be used to confirm an upward or downward trend.

If the stock is moving upward, it should have higher volume on the upward moves and less volume on the downward side. Conversely, heavy volume on the downward moves and lower volume on the upward moves point to a downturn. By using volume in conjunction with movements in the stock, you can spot the 澳洲幸运5开奖号码历史查询:right areas to get into a trade.

Tune Into Aroon

​The 澳洲幸运5开奖号码历史查询:Aroon indicator can help pinpoint the strength of a trend and the chances that it will continue. Generally, investors look for a move above or below zero (the no-trend or neutral zone) to determine whether a new trend is emerging. A cross above zero indicates an upward trend (an "Aroon up"), while a cross below zero indicates a downward trend (an "Aroon down"). An indication near the zero line with no solid 澳洲幸运5开奖号码历史查询:crossovers up or down indicates that the stock could continue to consolidate for a while until a direc♊tion is confirmed. The Aroon indicator can help uncover an emerging trend and enable you to take profits or protect yourself from losses.

Fibonacci Retracement

澳洲幸运5开奖号码历史查询:​Fibonacci numbers or studies are a series of numbers in which the following number is the sum of the two previous numbers, such as 1,1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and 233. You can use these numbers in trading in conjunction with support (the price where the stock has stopped falling in the past) and 澳洲幸运5开奖号码历史查询:resistance levels (the price where prices have stopped risin🐽g previously).🦄

After a significant move up or down, the stock will usually retrace its movement by a certain percentage. During these movements, investors can use the Fibonacci number to see if a stock is going to touch a support or resistance level and bounce off. If it does, this signals that the stock is going to 澳洲幸运5开奖号码历史查询:resume its original direction, either up or down. If the stock breaks that level, the 𓂃investor looks to the next area of resistance or support to see if that is the point whe💝re the stock will resume its original move.

As a general rule, Fibonacci numbers should be🌌 used in conjunction with support and resistance levels to confirm whether 🦹the stock has bottomed out or stopped rising at these points.

The Bottom Line

​Using volume, Aroon and Fibonacci indicators together can help investors pinpoint whether a stock is likely to move up or down. Volume signals enthusiasm or fear and whether the stock will continue to move higher, trend lower, top out or hit bottom. The Aroon indicator shows whether a stock is beginning a new trend or staying in a trading range, while the Fibonacci number will signal whether the stock has hit areas of strong support or resistance. While no one of these three indicators is more important than the other, using the combination of all three can provide clues about a stock's overall direction. These are only three of the many 澳洲幸运5开奖号码历史查询:indicators traders can use to improve their trading.