Understanding 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.
Others like Dow Jones, Charles Dow, William Gann and Ralph Elliott all had a major part that they played in developing the techniques for technical analysis. In the twentieth century more and more tools and theories have been either devised or enhanced as well as software for computers have been developed.
Technical analysis is only interested in the market price movements, it makes analysis of the company characteristics and estimates the company's value or commodity. In other words a study is done on supply and demand in a specific market, and determines in which direction or trend it will rear to in the future. The market is studied itself in order to understand the emotions and not the components of the market. This enables you to be a better trader or investor.
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 discipline of security analysis forecasts future directions of prices by studying past market movements such as price and volume and only considers this. You have got to know when to buy and when to sell when it comes to investing or trading on the market. You can find the answers by looking at the technical analysis.
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. - 23222
Others like Dow Jones, Charles Dow, William Gann and Ralph Elliott all had a major part that they played in developing the techniques for technical analysis. In the twentieth century more and more tools and theories have been either devised or enhanced as well as software for computers have been developed.
Technical analysis is only interested in the market price movements, it makes analysis of the company characteristics and estimates the company's value or commodity. In other words a study is done on supply and demand in a specific market, and determines in which direction or trend it will rear to in the future. The market is studied itself in order to understand the emotions and not the components of the market. This enables you to be a better trader or investor.
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 discipline of security analysis forecasts future directions of prices by studying past market movements such as price and volume and only considers this. You have got to know when to buy and when to sell when it comes to investing or trading on the market. You can find the answers by looking at the technical analysis.
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. - 23222
posted by X - Men @ 1:45 AM
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