Understanding Technical Analysis
What is Technical Analysis?
Technical Analysis is a term used in stock trading which defines methods of determining
a stock price movement in the future. Data is analyzed from the past in hopes
of determining a pattern that will repeat in the future. Stock charts are the tool
used for technical analysis. There are several terms used in technical analysis like
MACD (Moving Average Convergence/Divergence), MFI (money flow index), CMF (Chaikin Money Flow),
OBV (On Balance Volume), Bollinger Bands, and many more. Technical Analysis can be very
exciting if you really enjoy analyzing charts and trying to predict the next up or down
swing in the market. Technical Analysis is sometimes referred to as the opposite of Fundamental Analysis, Technical Analysis doesn't care anything about the company strength, revenue, earnings
per share (PE), cash on hand, book value, or anything else that has to do with the
companies financial data sheet.
More information on
Technical Analysis
Stock Chart below from Yahoo! Finance with Technical Analysis Indicators:
