How Technical Analysis Works
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 made use of mainly by financial professionals and traders as well as active day traders, pit traders and the market makers. Modern studies of technical analysis has proved that it gives positive results and it was noted that these results were suspect due to issues such as data spying and he study was deemed inconclusive. Many researchers still maintain that technical analysis is not consistent and is a weak form of market hypothesis.
Technical analysis is a vast topic. It is based on three assumptions - whereby history repeats itself and prices move in trends, as well as the market will discount everything. Analysts are not perturbed if stocks are undervalued; what matters is the security of past trading stats and what information the past stats can provide as to where the security will move in the future.
When we see the AOL this means a downward movement in price. When stocks rise in price, you find the sellers then come in and sell their stock, which creates this up and down movement in price fluctuation, which technical analysis terms lower lows and lower highs and determines stock going on a down trend.
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.
The correlations of changes are looked for in other areas such as options and call ratios with price. Included are sentiment indicators like put/call ratios and are then implied volatility in the technical analysis. They will foresee price movements like large gains from trading that has more or plenty but a lot less losing trades, which result in positive returns over a long period with the correct risk taken and management of money.
Traders have expressed that trading in the direction of trend is the most effective means to profits in the financial and commodity market. For those of you who are interested in technical analysis, you should go online for further information. There are many books offered on the subject. - 23223
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 made use of mainly by financial professionals and traders as well as active day traders, pit traders and the market makers. Modern studies of technical analysis has proved that it gives positive results and it was noted that these results were suspect due to issues such as data spying and he study was deemed inconclusive. Many researchers still maintain that technical analysis is not consistent and is a weak form of market hypothesis.
Technical analysis is a vast topic. It is based on three assumptions - whereby history repeats itself and prices move in trends, as well as the market will discount everything. Analysts are not perturbed if stocks are undervalued; what matters is the security of past trading stats and what information the past stats can provide as to where the security will move in the future.
When we see the AOL this means a downward movement in price. When stocks rise in price, you find the sellers then come in and sell their stock, which creates this up and down movement in price fluctuation, which technical analysis terms lower lows and lower highs and determines stock going on a down trend.
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.
The correlations of changes are looked for in other areas such as options and call ratios with price. Included are sentiment indicators like put/call ratios and are then implied volatility in the technical analysis. They will foresee price movements like large gains from trading that has more or plenty but a lot less losing trades, which result in positive returns over a long period with the correct risk taken and management of money.
Traders have expressed that trading in the direction of trend is the most effective means to profits in the financial and commodity market. For those of you who are interested in technical analysis, you should go online for further information. There are many books offered on the subject. - 23223
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If you want to learn more about technical analysis go to www.wallstreetwindow.com.
posted by X - Men @ 2:49 AM
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