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.
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.