What is Shares Technical Analysis ?

A study of company prospects based on the deductions and presumptions that can be made by interogating a shares present day and historic performance. Sometimes also studying share volume and often comparing share charts to standards such as indices or sectors. The analysis may also bring in present and historic data such as trends, volatility, PE Ratio, EPS, normal market size, number of shares in circulation.

Technical analysis begins with raw, historic data concerning a company which is plotted normally in standard x-y format. The "Chart" then has mathmatical operations performed upon it - the technical analysis often linking parameters and operators in complex algorithms. The results are then output as further graphs, highlighted watchpoints or even buy/sell indicators.

Shares Charting Software

Displays share price performance over set time periods. Time is set on the horizontal chart axis and share price is on the vertical axis.

Share charts can be found online or may be purchased as software loaded on to your PC. Downloads of stock market company closing prices available daily.

Technical analysis software packages

Performs analytical operations on share charts as part of online charting services or within charting software packages. Most basic technical analysis involves use of moving averages as buy/sell indicators.

Some of the most highly used technical analysis operations are described below.

Metastock Technical Analysis Software

Metastock™ Shares Technical Analysis systems

Metastock are the leader

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Reuters own Metastock and provide the DataLink end-of-day share price and FX data. Metastock™ has immensely powerful features for serious stock market traders.

MetaStock™ (End of Day)

For investor and shares traders. MetaStock End-of-Day is specifically designed for traders who do their analysis after the markets close. Whether you're an experienced, active trader or just learning how to trade the markets, MetaStock helps you succeed. The software contains powerful analysis tools to help you make informed decisions about what to buy & sell and when to execute with out-of-the box trading solutions that are reliable and easy to use. Click here to visit Metastock

MetaStock™ Professional FX

For Forex traders. MetaStock Pro FX is specifically designed for foreign exchange traders. Whether you're an experienced, active FX trader or just learning how to trade currencies on the FOREX market, MetaStock Pro FX helps you succeed. The software contains powerful analysis tools to help you make informed decisions about which currencies to buy & sell and when to execute. MetaStock Pro FX is powered by QuoteCenter real-time data platform—giving you access to accurate and timely FOREX quotes from over 800 contributing banks. No other FX data providers offer the breadth and accuracy that QuoteCenter does. Click here for more info

Ionic Sharescope Charting Software

Sharescope Technical Analysis software from Ionic Information

ShareScope is the award-winning stock market analysis software behind thousands of successful investors. Indeed, they’ve voted ShareScope the UK’s Best Trading and Investment Software for SEVEN years running.

You’ll start making better informed decisions. You’ll evolve and improve your investment strategy. And ShareScope’s immensely powerful Data Mining will revolutionalise the speed and accuracy with which you identify new opportunities – whether based on fundamentals, chart patterns or both.

ShareScope is also quick and easy to use, and can be customised to display the data most important to you. Choose from up to 14 years’ prices and fundamentals, over 70 chart types and analytics, company news, sector ranking, broker consensus and forecasts and Directors’ dealings.

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Sharescope Technical Analysis software from Ionic Information
The UK's No.1
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Glossary of stockmarket technical analysis terms

Accumulation/Distribution Line

A volume indicator, the Accumulation/Distribution Line was developed by Marc Chaikin to assess the cumulative flow of money into and out of a security

Aroon and Aroon Oscillator

A set of oscillators similar to the ADX system. They help determine the strength and direction of the current trend

Average Directional Index (ADX)

An oscillator that assesses the strength of current trends, and can also be used to identify potential changes in a market from trending to nontrending

Average True Range (ATR)

An indicator that measures a security's volatility, but gives no indication of price direction or duration

Bollinger Bands

An indicator that allows users to compare volatility and relative price levels over a period of time

Bollinger Width

An indicator of volatility based on the difference between upper and lower Bollinger Bands. The width can also be used to analyze the strength of a trend

Commodity Channel Index (CCI)

An oscillator used to identify changes and strength in trend, and find buy or sell signals

Chaikin Money

Best used in conjunction with other aspects of technical analysis, this indicator focuses on the location of the close relative to the range for the period (daily or weekly)

Chaikin Oscillator

Technically an indicator of an indicator, the Chaikin Oscillator gives momentum characteristics to the Accumulation/Distribution Line


One of the simplest and most reliable indicators available, MACD uses moving averages, which are lagging indicators, to include some trend following characteristics

Money Flow Index (MFI)

A volume-weighted Momentum indicator that measures the strength of money flowing in and out of a security

Moving Average Envelopes

A pair of lines that run parallel to the moving average line, and are placed a specified percentage distance above and below it. MA envelopes allow a user to determine when prices have strayed from the moving average line by that percentage

Moving Averages

One of the most popular and easy to use tools available to the technical analyst. By using an average of prices, moving averages smooth a data series and make it easier to spot trends

On Balance Volume (OBV)

One of the first and most popular indicators to measure positive and negative volume flow.

The OBV charts a cumulative total of volume that increases when the price closes up and decreases when the price closes down. The line it forms can be used to look for divergences or confirmation

Parabolic SAR

Also referred to as the stop-and-reversal indicator, Parabolic SAR sets trailing price stops for long or short positions. It is most useful when a security is trending

Percentage Volume Oscillator (PVO)

The percentage difference between two moving averages of volume. The PVO can be used to identify periods of expanding or contracting volume

Price Channels

Similar to Bollinger Bands, price channels form boundaries above and below the price line and can be used as indicators of volatility. Price channels are created by specifying a number of periods that will chart an n period high or low around the price line

Price Oscillator (including PPO)

An indicator based on the difference between two moving averages, expressed as either a percentage or in absolute terms

Price Relative

Compares the performance of one security to another. It is often used to compare the performance of a particular stock to a market index, usually the S&P 500

Price By Volume

A horizontal histogram that displays total volume within a certain price range

Rabbitt Q-StockRank

A combination of nine fundamental and technical models applied to over 3000 stocks daily. The Q StockRank is a starting point that identifies stocks to which you may then apply your own experience, insights, judgment, and knowledge

Rate of Change

A simple yet effective momentum indicator that compares the price today with the price n periods ago

Relative Strength Index (RSI)

A momentum oscillator that compares the magnitude of gains against the magnitude of losses

Standard Deviation

A statistical term that provides a good indication of volatility. It measures how widely values are dispersed from the average

Stochastic Oscillator

A momentum indicator that shows the location of the current close relative to the high/low range over a set number of periods


An oscillator that measures the level of RSI relative to its range, over a set period of time by applying the formula behind Stochastics


A momentum indicator that displays the percent rate-of-change of a triple exponentially smoothed moving average of a security's closing price

Ultimate Oscillator

A bounded oscillator that incorporates three different time frames into one number


A momentum indicator especially popular for measuring overbought and oversold levels


ZigZag isn't a true indicator but a means to filter chart noise and compare relative price movements. Beware - ZigZag has zero predictive power !


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