Secrets of Technical Analysis
Technical analysis was derived from observing financial markets for the past decade. This method being the oldest was discovered and developed by Homma Munehisa during the early eighteenth century and progressed to the candlestick method whereby in modern day is a charting tool for technical analysis.
A variety of charts "graphs" are used to prices over time, although they do not show absolute predictions about the future prices. Technical analysis is similar to forecasting the weather in that the future financial price is based on the past price movements.
Your stock charts will show you resistance and support levels. Relevant information will determine the market prices, so internals are taken above the external indicator. The fluctuation of prices tends to repeat them as investors use the same patterns collectively so technical analysis would rather focus on solid trends and conditions.
Although the statement of it being unpredictable; users still say it helps them to identify trade opportunities. The use of technical analysis is more commonly used n the foreign exchange market than in fundamental analysis.
The best way to understand what technical analysis is that it is associated with commodities as well as forex; and the participants are dominantly traders. To understand this fully what this is and is not you have to compare technical analysis with fundamental analysis.
The study of charts is primary as technical analysis uses other tools and methods to define prices. What is looked for is moving averages and lines of support, channels and hidden formations like balance days and flags. Indicators are also used extensively which are just mathematical calculations of volume and price. The relationship is looked for between the two.
Technical analysis is by far the most reliable source for trading the markets. You would define this by looking at the chart patterns. A trader would use technical analysis and see in which direction the price for financial security and movement lies.
There are different methods and teaching applied to technical analysis like the Elliot wave, candlestick, and Dow Theory; and other approaches may be ignored, but a lot of the time these elements are combined from more than one source of teaching. Technical analysis is based on experience and patterns reflect at a given time as to what interpretation of the pattern should indicate. - 23196
A variety of charts "graphs" are used to prices over time, although they do not show absolute predictions about the future prices. Technical analysis is similar to forecasting the weather in that the future financial price is based on the past price movements.
Your stock charts will show you resistance and support levels. Relevant information will determine the market prices, so internals are taken above the external indicator. The fluctuation of prices tends to repeat them as investors use the same patterns collectively so technical analysis would rather focus on solid trends and conditions.
Although the statement of it being unpredictable; users still say it helps them to identify trade opportunities. The use of technical analysis is more commonly used n the foreign exchange market than in fundamental analysis.
The best way to understand what technical analysis is that it is associated with commodities as well as forex; and the participants are dominantly traders. To understand this fully what this is and is not you have to compare technical analysis with fundamental analysis.
The study of charts is primary as technical analysis uses other tools and methods to define prices. What is looked for is moving averages and lines of support, channels and hidden formations like balance days and flags. Indicators are also used extensively which are just mathematical calculations of volume and price. The relationship is looked for between the two.
Technical analysis is by far the most reliable source for trading the markets. You would define this by looking at the chart patterns. A trader would use technical analysis and see in which direction the price for financial security and movement lies.
There are different methods and teaching applied to technical analysis like the Elliot wave, candlestick, and Dow Theory; and other approaches may be ignored, but a lot of the time these elements are combined from more than one source of teaching. Technical analysis is based on experience and patterns reflect at a given time as to what interpretation of the pattern should indicate. - 23196
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If you want to learn more about technical analysis go to www.wallstreetwindow.com.
posted by X - Men @ 5:39 AM
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