Identifying crowd behavior is important for anyone working with people on a mass scale, but no one as important as stock traders. It is well known that people will copy each other and move together in the same direction, but it is the science of identifying this crowd behavior that is very important in making money in the financial markets.

One of the first and foremost rules of identifying crowd behavior is that people will follow each other. Known as the [...]

Market timing is a diverse topic, but it can be summed up as making choices based on predictions of the future movement of a financial market. This usually consists of using charts to identify market trends, buying when a stock is about to move upward while selling when a stock is about to move downward. Many investors look not just at the individual stock analysis, but also at the unique aspects and history of the company or commodity in question [...]

Trends can be defined as the course of a market, whether it is upward, downward, or even sideways. Every market, whether it is fashion or food, has trends and the financial markets are no exception. In the case of financial markets such as the stock market, trends are significant because understanding them can increase profits and decrease losses for traders and everyone with money in the market in question.

In general, there are two main trends that are noted by market [...]

Technical analysis is a way of using market data to predict the future of the stock market. Many of the principles of technical analysis have been developed over several hundred years of watching the stock market and other markets as well.

The oldest known form of technical analysis is known as candlestick analysis. Once used to predict rice prices, candlestick analysis is a method invented in the early eighteenth century. It remains one of the main methods of predicting stock prices [...]