Technical analysis

 

Home
Site Map
Add Term
Search
About Us
Contributors

Technical analysis

Technical analysis is a method of investing which focuses on past price movements and attempts to identify trends that indicate future price movement. The successful technical analyst buys and sells on the basis of his preferred technical indicators, and hopes to make a profit when the share price fulfils his predictions.Underpinning technical analysis are three core principles which are central to the TA faith:Share prices move in patternsPatterns repeat themselvesIf you anticipate a pattern correctly, you can profit from itDifferent technical analysts use different techniques, but for the most part they rely on the same raw data:Price (whether share prices, commodity prices or option prices)Volume (the number of shares or other instrument traded per day)Using historical data of these two variables, the analyst creates a chart (usually on a computer using special software), identifies patterns, and trades on the basis of what they tell him.If a trend indicates that the price of a share is due to go up, he buys shares or call options.If a trend indicates that the price of a share is due to go down, be sells shares or buys put options.

Technical analysis

Security analysis that seeks to detect and interpret patterns in past security prices.



Technical analysis

Similar Matches

Technical rally

Technical rally

A short term rise in share price against a background of general decline in prices.


Technical barrier to trade

Technical barrier to trade

A technical regulation or other requirement (for testing, labeling, packaging, marketing, certificaiton, etc.) applied to imports in a way that restricts trade.


Technical descriptors

Technical descriptors

Variables that are used to describe the market in terms of patterns in historical data.


Technical Information

Technical Information

Information related to the momentum of a particular variable. In market analysis, technical information is information related to market dynamics and crowd behavior only.


Technical rally

Technical rally

Short rise in securities or commodities futures prices in the face of a general declining trend. Such a rally may result because investors are bargain hunting or because analysts have noticed a particular support level at which securities usually bounce up. Antithesis of correction.


Further Suggestions

Technical inefficiency
Technical regulation
Technical condition of a market
Technical progress
Technical analysts
Technical forecasting
Technical sign


 
All rights Reserved. Do not copy without permission.