Technical Analysis Guide
Understanding what is going to happen in the future is something that everyone would like to have. But we have all seen that there is really no such thing as a crystal ball in stock trading. There is however something that we can try to work towards and that is the use of technical analysis which could help get a view on the future by using the lessons that have been learned in the past.
Technical analysis is when analysts take market trends from yesterday, last year or a few years back and look at the way in which the prices of certain items (be they goods or shares) were managed and the volume in which they were bought or sold. Using this information, they are then able to forecast what the market trend of that particular item or product will be in the future.
To obtain the information that they require, an analyst will often make use of various charts, models or even an index. This is a good means of tracking data and then also trying to determine what trends are likely to be present in the future market. It is clear that the charts such as a candle stick or open low chart are very good as a means of actually depicting the way in which trends are likely to be shaped.
Welles Wilder was the first person to develop the discipline of technical analysis and this work has now become a key part of the work for many professionals. This is especially true of those that are involved in trading and of course particularly pertinent to those in the stock exchange. They utilize the information to try and make as much money as they can, so it is clear the amount of importance that they attach to this information.
There is another type of analysis called fundamental and this takes different data points into account than those that are used by technical analysts. They would for instance focus on the actual position of the company stock, the company's market share, earnings and the like. So they are dealing with what could call, real time data. The jury is out as to which discipline is more effective and a lot of big organizations make sure that they have both on their payroll.
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. - 23159
Technical analysis is when analysts take market trends from yesterday, last year or a few years back and look at the way in which the prices of certain items (be they goods or shares) were managed and the volume in which they were bought or sold. Using this information, they are then able to forecast what the market trend of that particular item or product will be in the future.
To obtain the information that they require, an analyst will often make use of various charts, models or even an index. This is a good means of tracking data and then also trying to determine what trends are likely to be present in the future market. It is clear that the charts such as a candle stick or open low chart are very good as a means of actually depicting the way in which trends are likely to be shaped.
Welles Wilder was the first person to develop the discipline of technical analysis and this work has now become a key part of the work for many professionals. This is especially true of those that are involved in trading and of course particularly pertinent to those in the stock exchange. They utilize the information to try and make as much money as they can, so it is clear the amount of importance that they attach to this information.
There is another type of analysis called fundamental and this takes different data points into account than those that are used by technical analysts. They would for instance focus on the actual position of the company stock, the company's market share, earnings and the like. So they are dealing with what could call, real time data. The jury is out as to which discipline is more effective and a lot of big organizations make sure that they have both on their payroll.
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. - 23159
posted by X - Men @ 6:47 AM
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