Friday, 17 February 2012

Introduction to Technical Analysis .. Part 1

Introduction to Technical Analysis .. Part 1
What is Technical Analysis?


 

Technical Analysis check the previous price movements to predict future price movements. Technical Analysis almost exclusively on
Diagrams to
analyze it






Technical analysis is applicable to stocks, commodities, hole economy
Where that price is affected channels of supply and demand. Price refers to any group or nearby low-or high or open to the security given to
A certain time frame. Time frame can be a document on a daily (for the moment, 5 - minutes, 15 minutes or every hour), data daily price
Weekly or
monthly and lasts a few hours or many years.
Technical analysts are interested in two things: -
1 - What is the current price?
2 - The history of price movement?
The price is the final result of  channels of supply and demand for
stock of company. The Target Analysis to expect the future price direction.
Focusing on price and price only, technical analysis represents a direct look.
Analysis may include of three steps: -
1 - the broad market analysis through key indicators.
2 - Sector Analysis to identify the strongest and weakest groups within the broader market.
3 - ANALYSIS
stock  individual to distinguish stronger and weaker stock
within selected groups.
Analysis chart :
Technical analysis can be a simple or compound. The example below represents a simplified version. As long as we intersted to buy stock , the focus will be on
The discovery of cases
to climb.






The forces of Technical Analysis:
Focus on price: If Objective expect future price
Habit. Focusing on price action, analysts are focusing on the future automatically.
Helped the access point: Technical analysis can help correct entry point Mean Time. Some analysts use fundamental analysis to decide what to
Deal and technical analysis to decide when to buy. It is no secret that timing can play a role in performance. Technical analysis can help
Discovery demand (support) (resistance) levels as well as Breakout. Simply waiting for the outbreak or buy above resistance levels near
Support can improve
revenue.





Conclusions: -
technical Analysts consider market to be 80% psychological and 20% logical. Fundamental analysts consider the market to be 20% psychological
And 80% logical. Psychological or logical it may be open to debate, but there is no  questioning the current price for the security. Finally  available to see him
Everyone is a suspect in
Legitimacy

Technical analysis of market:
Is used in technical analysis of market 2 theories
:
1 - The Dow Theory
2 - Elliott Wave
Theory




Dow Theory: -

Provided
Dow theory was around for almost 100 years, while as are led to today's markets, the basic components of Dow theory still remain valid.
Developed by Charles Dow, refined by William hamlten  and put by Robert Rhea, the Dow theory addresses not only technical analysis and price only,
But also market philosophy.





Dow theory presented below were taken from Robert Rhea, the Dow theory. Had the Dow theory attributed to Charles Dow, the writings of William hamlten  which
Operate as the cornerstone for THIS book and development of the theory.
Also, you should note that most of the developed theory with the Dow Jones Industrial and Rail averages


Background
Charles Dow developed the Dow theory from his analysis of market price action in the late nineteenth century. Until his death in 1902, Dow was a partner
In addition to the editor of the Wall Street Journal. Although he never wrote the book on the subject, wrote some editorials books which reflected his view
On speculation and the role of the rail and industrial averages.






The chart (chart) under the Coca-Cola from a recent example of primary trend remains intact. Coca-Cola began to fail acute above 90. the stock
Mobilization of the market in October / October and November / December 1998, but began by  fail December / December seconds. According to the theory
Dow, October / October / November meeting / November will be called a secondary move (against the underlying trend). Likely to indulge in
stock
Provide the general market at the time. In any case, when the major indices were hitting new highs in December / December,
Coca-Cola was floundering and starts to resume
trend
Statute.









Note that hamlten Sometimes the market respond negatively to good news. To hamlten, thinking was simple: consider the market before it. Hit the news in a timely
Street, reflects in the price. THIS explains the old Wall Street, "buy the rumor, sell on the news." While starting the rumor
Nomination down, forward and offered to buyers over price. Strikes at the news, price raising the price to reflect the news in full. yahoo
And the time it's up to incomes of a classic example. For the three previous quarters, raising the price
yahoo Leadership quite so little income. Although the incomes of
2%. Exceeded expectations every time,
the stock
by about





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