Technical Analysis 101
Technical analysis is seen as a way in which to predict what is going to happen in the future by trying to harness the benefit of hind sight and ensuring that the information that is available is used to understand what could possibly happen in future stock picks.
The term of technical analysis is applied to the situation where an analyst will utilize market trends that appeared in the past and this could be as recent as the day before to up to a number of years in the past. The type of data would be aspects such as share or commodity prices and the like. This information helps them to forecast what is likely to happen within the future and again they can determine how far into the future they are going to forecast.
In order to find this information, analysts use a variety of models, indexes, charts (such as the open high low chart, candle stick chart or line chart) and trading rules. By measuring the information, they are able to make their estimations and forecasts. An example of an index is the momentum oscillator which measures velocity and magnitude of directional price movements and it does this by measuring and comparing the upwards and downwards movements of specific stocks or products.
Technical analysis is a discipline all on its own and it was first demonstrated by one Welles Wilder. His work has laid down the foundation for many professions that are now in existence and those involved with the various stock markets around the world are no doubt particularly grateful for the work that he has done. They use his discipline as an every day tool in their work environment.
Whilst using technical analysis is often frowned upon by fundamental analysts who use actual company stock position, market position, etc. To make their predictions, larger corporations now employ both technical and fundamental analysts.
You cannot use technical analysis to map out the future of your company or predict what will happen but you can highlight and magnify trading opportunities that without technical analysis would have been overlooked. - 23218
The term of technical analysis is applied to the situation where an analyst will utilize market trends that appeared in the past and this could be as recent as the day before to up to a number of years in the past. The type of data would be aspects such as share or commodity prices and the like. This information helps them to forecast what is likely to happen within the future and again they can determine how far into the future they are going to forecast.
In order to find this information, analysts use a variety of models, indexes, charts (such as the open high low chart, candle stick chart or line chart) and trading rules. By measuring the information, they are able to make their estimations and forecasts. An example of an index is the momentum oscillator which measures velocity and magnitude of directional price movements and it does this by measuring and comparing the upwards and downwards movements of specific stocks or products.
Technical analysis is a discipline all on its own and it was first demonstrated by one Welles Wilder. His work has laid down the foundation for many professions that are now in existence and those involved with the various stock markets around the world are no doubt particularly grateful for the work that he has done. They use his discipline as an every day tool in their work environment.
Whilst using technical analysis is often frowned upon by fundamental analysts who use actual company stock position, market position, etc. To make their predictions, larger corporations now employ both technical and fundamental analysts.
You cannot use technical analysis to map out the future of your company or predict what will happen but you can highlight and magnify trading opportunities that without technical analysis would have been overlooked. - 23218
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posted by X - Men @ 2:27 AM
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