Welcome to Technical Analysis Guide
Charting Technical Analysis Article
This is a selection made from among articles on Charting Technical Analysis. For a permanent link to this article, or to bookmark it for future reading, click here.
The Science of Stock Market Technical Analysis
from:
Without trade, there will be no progressive economy. One of the bases of a progressive economy is an active and continuous trade which facilitates the continuous flow of money around the market. As long as there is an existing trade between two individuals or entities, be it a commodity or other things that can be purchased or sell to generate profit, the flow of money around the market will go on and a progressive economy is within easy reach.
In addition, the existence of market further established a common ground for different trading activities. Apart from the physical structure or place of trade, the market is considered to be a systematic process allowing traders to ask and bid, thus helping sellers and bidders to interact and make various deals. It functions like a voting system wherein the candidates (the sellers) seek the support of voters (the buyers) by offering their platform of governance (their product and its market price).
One of the market systems that are very common among traders is the stock market (i.e. New York Stock Exchange). It is the market for company stock trading and its derivatives. For individuals outside the trading industry, stock is a term that is difficult to understand. Unlike other market system such as the foreign currency exchange market and commodities market wherein you can easily determine what is being traded (currency and commodities, respectively), stock creates confusion among non-traders and even to neophyte traders.
In finance, stock is the capital raised by a certain company or corporation. Such capital is accumulated through the issuance and release of shares to interested individuals or organizations. Like in acquiring a pair of foreign currency or a commodity for revenue, the acquisition of shares of a company’s stock allows you to partake in the revenues (based on the percentage of your share ownership) generated by that company.
However, the issuance and distribution of stocks in the market requires extensive study and evaluation. Like the currency or commodities wherein you need to take a position on a certain deal, there is a right time to distribute stocks in the market to raise more capital for the company. It is determined through a technical analysis.
Aside from determining the ideal time to distribute stocks on the market, technical analysis is also used to evaluate securities (the legal right that is awarded by the borrower to a creditor and often represented by a certificate such as shares of corporate stocks) by analyzing the statistics produced by the present market activities, volumes, and past market prices. It is done to forecast price trends in which the stocks could be sold for a profit.
Basically, technical analysis on the stock market is done through studying different charts of past price action. It includes variables such as the stock’s price, volume, and open interest (the total number of derivative contracts). In most cases, it only includes the analysis within the dimensions of the market and not the financial dimension of the company (such as dividends or cash flows). However, there are also companies who try to combine the fundamental (study of a company’s financial dimension) and technical analysis.
Even the accuracy of the results is disputed (since it is a predictive method that is based on price trend assumptions), technical analysis is one of the reliable tools that companies and stock traders can use for their quest of profitable capital raising and huge revenue generation, respectively.
Charting Technical Analysis News
Charmercharts Bond Report: 25th May - Inside Futures
Charmercharts Bond Report: 25th May Inside Futures In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor. She returned to the floor, trading her own account, ... |
Think commodity fundamentals look grim? Check out the charts - Reuters
Think commodity fundamentals look grim? Check out the charts Reuters GROWING INFLUENCE While technical analysis has been part of commodity trading even since Japanese grain merchants started studying patterns in price movements in the 18th century, quantitative traders and funds have come to exert even greater influence ... |
ADX Vs. GUT: Fundamental Analysis Isn't Ideal For CEF Share Price Valuation - Seeking Alpha
ADX Vs. GUT: Fundamental Analysis Isn't Ideal For CEF Share Price Valuation Seeking Alpha In fact, we believe that CEF share price valuation has more in common with underlying concepts of technical analysis. Based on fundamental analysis, The Adams Express Company (ADX) should be a "buy" and Gabelli Utility Trust (GUT) should be a "sell", ... |
Daily Technical Analysis - Action Forex
Daily Technical Analysis Action Forex There are no changes in my technical outlook. The bias remains bearish in nearest term 1.5600 – 1.5550/15 support area. Immediate resistance remains around 1.5735. A clear break above that area could lead price to neutral zone in nearest term testing ... |
Euro May Surpass 105 Yen on Fibonacci: Technical Analysis - Bloomberg
Euro May Surpass 105 Yen on Fibonacci: Technical Analysis Bloomberg In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. To contact the reporters on this story: Shigeki Nozawa in Tokyo at snozawa1@bloomberg.net; Mariko Ishikawa ... |
Pervasip CEO Interviewed On Stock Legends Internet Radio Program - MarketWatch (press release)
Pervasip CEO Interviewed On Stock Legends Internet Radio Program MarketWatch (press release) In addition to the interview, Stock Legends will post a research report and a technical analysis video chart. Stock Legends is primarily focused on the small/micro cap segment of the stock market. Stock Legends Radio is a new segment featuring stock ... |
Stocks' Breakdown Confirms the Bear's Return - Barron's
Stocks' Breakdown Confirms the Bear's Return Barron's This week's meager and abortive stock-market bounce reconfirmed that the bear is back as prices broke below key chart levels. That augurs another summer of lower prices and higher volatility. In technical analysis, when a price floor, also known as ... |
S&P 500 Market Correction May Subside: Technical Analysis - BusinessWeek
S&P 500 Market Correction May Subside: Technical Analysis BusinessWeek By Joseph Ciolli on May 24, 2012 The slump in the Standard & Poor's 500 Index (SPX) may be nearing an end after the measure dropped below its 150-day average, which may lure buyers into the market, according to Oppenheimer & Co. |