Technical Analysis can be defined as the art and science of forecasting future prices based on an examination of past price movements. Technical analysis is not astrology for predicting prices. Technical analysis is based on analyzing the current demand-supply of commodities, stocks, indices, futures or any tradable instrument.
Technical analysis involves putting stock information like prices, volumes and open interest on a chart and applying various patterns and indicators to it in order to assess future price movements. The time frame in which technical analysis is applied may range from intraday (1-minute, 5-minutes, 10-minute, 15-minute, 30-minute or hourly), daily, weekly or monthly price data to many years.
There are essentially two methods of analyzing investment opportunities in the security market viz fundamental analysis and technical analysis. You can use fundamental information like financial and non-financial aspects of the company or technical information which ignores fundamentals and focuses on actual price movements.
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