Saturday, April 19, 2008

What is Technical Analysis?

Technical analysis attempts to use past stock price and volume information to predict future price movements. Note the emphasis. It also attempts to time the markets.

Technical analysis is the process of analyzing a security's historical prices in an effort to determine probable future prices. This is done by comparing current price action (i.e., current expectations) with comparable historical price action to predict a reasonable outcome. Should I know anything about technical analysis?



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