Technical Analysis

Technical Analysis : We've let me know what to do in the technical analysis first noted by Charles Dow, American journalist, who is also the founder of Dow Jones found that the financial markets in the United States. Technical analysis is the study of price charts that will be used as the main tool. Using the data of past performance (historical) to determine where the direction of the next price movement. The main point of this analysis is how we have to recognize trends as early as possible in the circumstances.

Technical analysis is used today comes from the Dow Theory. Dow Theory is the creation of a series of articles in the Wall Street, the Dow Charles developed from 1900 to 1902. The origins of this theory includes principles such as price dynamics make price reductions for all the information, it is known (theory assume that all information current or past or future and be absorbed into the market based on good information from the emotions of investors, inflation data economic data and financial statement disclosure), the verification and the deviation (difference), changes in volume and price support resistance (support / resistance).

In short, technical analysis can be used for the development of prices Using graphs and feel will be interpreted as a mathematical research and "art." Thus, you can see that there are two types of devices used in technical analysis charts and quantitative models. In order to achieve the "perception", there are some assumptions that are used in technical analysis, including:
  1. First, all the market fundamentals are presented in real market data.
  2. Second, the price in the market is a reflection of all factors in the market.
  3. Third, history is repeating itself. Investment behavior in the past, appeared again and again to be used as a benchmark for predicting future behavior.
  4. Fourth, prices move in trends. Technical analysis does not believe that random and unpredictable movement. Prices will move in one direction (trend) and will no doubt continue for some time.
Thank you for your interest in him and all the good work

2 comments:

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