Post by fastwalker on Sept 23, 2004 0:00:39 GMT -5
;D
Technical Analysis: Introduction
There are two major types of analysis for predicting the performance of a company's stock - fundamental and technical. The latter looks for peaks, bottoms, trends, patterns, and other factors affecting a stock's price movement and then making a buy/sell decision based on those factors. It is a technique many people attempt, though very few are truly successful.
Today, the world of technical analysis is huge. There are literally hundreds of different patterns and indicators investors claim to be successful. Trying to keep this tutorial short was not an easy task, but we will try our best to scratch the surface and introduce you to the different types of stock charts and the various technical analysis tools.
More... ;D
Technical Analysis: What is Technical Analysis?
Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, past prices, and volume. Technical analysts do not attempt to measure a security's intrinsic value, instead they look for patterns and indicators on stock charts that will determine a stocks future performance.
Technical analysis has become popular over the past several years, as more and more people believe that the historical performance of a stock is a strong indication of future performance. The use of past performance should not come as a big surprise. People using fundamental analysis have always looked at the past performance by comparing fiscal data from previous quarters and years to determine future growth. The difference lies in the technical analyst's belief that securities move with very predictable trends and patterns. These trends continue until something happens to change the trend, and until this change occurs, price levels are predictable.
Some technical analysts claim they can be extremely accurate a majority of the time. There are many instances of investors successfully trading securities with only the knowledge of its chart and without even understanding what the company does. Technical analysis is a terrific tool, but most agree that it is much more effective when combined with fundamental analysis.
Technical Analysis: Introduction
There are two major types of analysis for predicting the performance of a company's stock - fundamental and technical. The latter looks for peaks, bottoms, trends, patterns, and other factors affecting a stock's price movement and then making a buy/sell decision based on those factors. It is a technique many people attempt, though very few are truly successful.
Today, the world of technical analysis is huge. There are literally hundreds of different patterns and indicators investors claim to be successful. Trying to keep this tutorial short was not an easy task, but we will try our best to scratch the surface and introduce you to the different types of stock charts and the various technical analysis tools.
More... ;D
Technical Analysis: What is Technical Analysis?
Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, past prices, and volume. Technical analysts do not attempt to measure a security's intrinsic value, instead they look for patterns and indicators on stock charts that will determine a stocks future performance.
Technical analysis has become popular over the past several years, as more and more people believe that the historical performance of a stock is a strong indication of future performance. The use of past performance should not come as a big surprise. People using fundamental analysis have always looked at the past performance by comparing fiscal data from previous quarters and years to determine future growth. The difference lies in the technical analyst's belief that securities move with very predictable trends and patterns. These trends continue until something happens to change the trend, and until this change occurs, price levels are predictable.
Some technical analysts claim they can be extremely accurate a majority of the time. There are many instances of investors successfully trading securities with only the knowledge of its chart and without even understanding what the company does. Technical analysis is a terrific tool, but most agree that it is much more effective when combined with fundamental analysis.
