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Technical Analysis: Taxonomy
Taxonomy below taken from the Society of Technical Analyst's Diploma in Technical Analysis.
Taxonomy
- Bar Charts, gaps, islands, key reversals. Defining price objectives from gaps and patterns on bar charts. Arithmetic versus logarithmic scales.
- Moving Averages, arithmetic, weighted and exponential. Centered, non-centered and advanced. Single, double and multiple moving average crossovers. Moving envelopes, including Bollinger bands.
- Candle Charts and candle patterns.
- Point and figure charts. Construction, scale, box reversal, objective counting. Advantages and disadvantages compared to other types of chart.
- Dow Theory.
- Chart patterns, e.g. triangles, flags, pennants, diamonds, broadening patterns (megaphones), wedges.
- Reversal patterns and how to identify/anticipate them. Rounding tops and bottoms, head and shoulders, spikes, double / treble / multiple tops and bottoms.
- Trend. How to draw correct short, medium and long-term trend lines. Trend channels. Return lines and internal trendlines. Unconventional but useful trendlines. Acceleration. Speed lines. Trend characteristics.
- Consolidation - how and why it occurs. Breakouts and how to recognise them.
- Corrections: when and how far.
- Support and resistance. The various chart points and facets that can act as such.
- Basic elements of Gann Theory.
- Basic elements of Elliott Wave Theory.
- Fibonacci series, fan lines, arcs and time zones.
- Cycles. Amplitude, length, phase, harmonicity, synchronicity, left and right translation, detrending.
- Relative performance and how to interpret relative strength charts.
- Momentum indicators and oscillators including: Rate of change, Welles Wilder's RSI, Stochastics (%K&D), Moving Average Convergence Divergence (MACD), MACD Histogram, Directional Movement Indicator, Parabolics, Commodity Channel Index (%V).
- Volume Signals and indicators, including On-Balance-Volume, Volume Accumulator etc.
- Breadth indicators.
- Sentiment indicators and contrary opinion.
- The principle of convergence and divergence involving trend characteristic, oscillators, relative strength, breadth indicators and volume indicators.
- Investor Psychology - individual and group.