What is Technical Analysis
[Commentary]
From InvestopediaDefinition of 'Technical Analysis'
A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.
Investopedia explains 'Technical Analysis'
Technical analysts believe that the historical performance of stocks and markets are indications of future performance.
In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, the technical analyst's decision would be based on the patterns or activity of people going into each store.
In a shopping mall, a fundamental analyst would go to each store, study the product that was being sold, and then decide whether to buy it or not. By contrast, a technical analyst would sit on a bench in the mall and watch people go into the stores. Disregarding the intrinsic value of the products in the store, the technical analyst's decision would be based on the patterns or activity of people going into each store.
[Relevant Free Videos]
[Relevant Books]
[Relevant Blog Posts]
[Additional Commentary]
Technical Analysis (TA) is charting and price action. Any sort of trading vs investing will most likely be using TA. Buy and Hold (investing) then you can use Fundamental Analysis.Related Categories:
Notice:
Please post in the comments any additional videos, books, blog posts on the subject of this post so they can be added.
No comments:
Post a Comment