Technical Analysis

Technical analysis is a method of attempting to predict future stock trends.  It relies on the assumption that human nature doesn’t change and that past patterns can predict future behavior. It analyses security prices, volume and so on via chart patterns, indicators and indicators on indicators.

Traders usually use technical analysis to help them with their trading decisions, and some have achieved great success. However, many investors believe technical analysis is hocus-pocus and that dart throwing is a preferred option. The debate is still wide open, but technical analysis does seem to have certain useful applications. Some investors combine technical analysis with fundamental analysis to mix advantages both methods offer.

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