Technical Analysis
What is Technical Analysis?
Technical analysis is the study of financial market action. The technician looks at price
changes that occur on a day-to-day or week-to-week basis or over any other constant
time period displayed in graphic form, called charts. Hence the name chart analysis.
A chartist analyzes price charts only, while the technical analyst studies technical indicators
derived from price changes in addition to the price charts.
Technical analysts examine the price action of the financial markets instead of the fundamental
factors that (seem to) effect market prices. Technicians believe that even if all
relevant information of a particular market or stock was available, you still could not predict
a precise market "response" to that information. There are so many factors interacting
at any one time that it is easy for important ones to be ignored in favor of those that are
considered as the "flavor of the day."
The technical analyst believes that all the relevant market information is reflected (or discounted)
in the price with the exception of shocking news such as natural distasters or
acts of God. These factors, however, are discounted very quickly.
Topics on Technical Analysis
Technical Analysis pre-empts Fundamental Data
Chart Types and Chart Construction
Support, Resistance and Trendlines
Moving Averages and Moving Averages crossover
Momentum and Momentum indicator signals Reversal and Distribution
Equity Analysis
The Elliott Wave Principle - Impulsive waves with examples - Corrective Patterns with examples
Head and Shoulder reversal pattern
Facinating Fibinacci - Wave Correlations
Bollinger Bands
Indicators
a. Oscillators
b. Stochastics
c. RSI Wilders
d. Divergence
e. MACD
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