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 to identify patterns that can suggest future activity.


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, his or her decision would be based on the patterns or activity of people going into each store.




Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.

The Gann Studies - Learn why this pioneer of technical analysis believed it's possible to predict the future.

Short-, Intermediate- and Long-Term Trends - The success or failure of your long- and short-term investing depends on recognizing the direction of the market.

Point and Figure Charting - Take a look at how to construct and read these simple charts designed for longer-term positions.

Charting Your Way To Better Returns - Learn about the powerful hybrid techniques that take advantage of both technical and fundamental analysis.

Defining Active Trading - Curious about what it means to 'outperform the market'? Learn about an investing style that aims to do just that.

Trader's Corner - Finding the Magic Mix of Fundamentals and Technicals - For a record-holding stock trader, CANSLIM is the formula that identifies this magic mix.
Related Terms

Bollinger Bands

Chartist

Cup and Handle

Fundamental analysis

Head and Shoulders

Indicator

Moving Average

Technically Strong Market

Technically Weak Market

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