Technical Analysis
Fundamental analysis and technical analysis are two main ways to forecast the price trend. Fundamental analysis involves researching and evaluating the characteristics of the stock or company. Technical analysis , on the other hand , pays heavier attention to price movements. In my previous post - I mentioned that fundamental analysis tells us what to buy , and technical analysis tells us when to buy.
Predicting future moves in the stock market has become a science. This form of prediction has become known as technical analysis. Traders who take this approach to investing in the stock market usually hold stocks for a short time period and then sell their stocks once the predicted profit has been achieved.
Technical analysts focus on predicting the future using observations of the past. However it is more effective to see Technical Analysis as simply a means to determine entry and exit points.
Technical analysis is the study of price data and statistical indicators that are formed by market activity. Market activity illustrates the flow of supply and demand. This supply …
