Secrets Of Technical Analysis
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 the practice of analysts taking historical data - which could be data points such as revenues or prices - and tracking their historical development. The historical period could just be in the last week or could go as far back as a few years - depending on the discretion of those working with the information. They will try to predict what is likely to be the future scenario of a particular product by focusing on the historical trends of a similar situation.
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 are some who feel that the use of technical analysis by stock traders is perhaps not in keeping with the purist form of trading. They would usually advocate the use of alternative methods such as the position and price of company stocks, they would then base their future market estimations on these data points. These analysts are normally said to belong to the fundamental discipline. There is no clear decision as to whether fundamental or technical is better and big companies hedge themselves by ensuring that they have both types employed.
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. - 23223
Technical analysis is the practice of analysts taking historical data - which could be data points such as revenues or prices - and tracking their historical development. The historical period could just be in the last week or could go as far back as a few years - depending on the discretion of those working with the information. They will try to predict what is likely to be the future scenario of a particular product by focusing on the historical trends of a similar situation.
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 are some who feel that the use of technical analysis by stock traders is perhaps not in keeping with the purist form of trading. They would usually advocate the use of alternative methods such as the position and price of company stocks, they would then base their future market estimations on these data points. These analysts are normally said to belong to the fundamental discipline. There is no clear decision as to whether fundamental or technical is better and big companies hedge themselves by ensuring that they have both types employed.
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. - 23223
posted by X - Men @ 7:51 AM
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