Technical Analysis Defined
The definition of technical analysis is a security analysis regulation for forecasting the future direction of prices through the study of past market information, mainly the price and volume. This is accomplished by studying the financial market over hundreds of years.
Modern technical analysis was inspired by the development of the Dow Theory near the end of the 19th century. Watching particular items on the market is how this works. After a while one will notice a pattern in price.
Once the price pattern has been established one can then exploit that pattern to earn more money. Understanding and using the information will result in an increase in revenue. This is used mainly with traders and financial professional.
Most analysts believe that how the stocks fared in the past will indicate how the will act in the future. Learning from the financial past is supposed to tell the future so that certain decisions can be made.
If person were to use this theory and it worked they would be able to predict the rise and fall of items on the stock market. This is not an absolute prediction; it is mainly used to assist investors in what will likely happen.
The people that use this method develop charts to help them determine the long and short term information. If the charts are used properly they will help put together a view of what has happened and what is too come.
Classes, books and other teaching methods are provided by experts for those that want to learn how to excel in this method. The set back to this method is that the information gathered is not always reliable and can get a person in trouble. There is some complex information and simple information that can be gathered. - 23159
Modern technical analysis was inspired by the development of the Dow Theory near the end of the 19th century. Watching particular items on the market is how this works. After a while one will notice a pattern in price.
Once the price pattern has been established one can then exploit that pattern to earn more money. Understanding and using the information will result in an increase in revenue. This is used mainly with traders and financial professional.
Most analysts believe that how the stocks fared in the past will indicate how the will act in the future. Learning from the financial past is supposed to tell the future so that certain decisions can be made.
If person were to use this theory and it worked they would be able to predict the rise and fall of items on the stock market. This is not an absolute prediction; it is mainly used to assist investors in what will likely happen.
The people that use this method develop charts to help them determine the long and short term information. If the charts are used properly they will help put together a view of what has happened and what is too come.
Classes, books and other teaching methods are provided by experts for those that want to learn how to excel in this method. The set back to this method is that the information gathered is not always reliable and can get a person in trouble. There is some complex information and simple information that can be gathered. - 23159
posted by X - Men @ 5:38 AM
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