   
|
|
Technical Analysis
|
Technical Analysis is a method of forecasting prices of stocks, bonds, futures contracts, indices, or other financial instruments. The goal of technical analysis is to predict future price level or direction. It tends not to be the goal of technical analysis to explain why prices behave as they do; that would be fundamental analysis. Technical analysis primarily studies the action of a financial market.
The working principle behind technical analysis is that any influence on the market is already reflected in current price levels. Followers of technical analysis believe that: 1) prices move in trends, 2) history repeats itself, and 3) the market discounts everything. Technical analysis involves the use of different kinds of charts, or other market indicators such as moving averages, volume and open interest, oscillators, Japanese candlesticks, Elliott Wave Theory, and cycle analysis.
Rate this technical analysis definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
| |
