Technical Analysis
System Trading Current Chart patterns Gold & Silver Analysis
Generally investing communities depends on recommendation popularly known as “TIPS OF THE DAY”. Generally you have observed that traders ask their broker or friends – What should I Buy? or What will be the future of my stock? or What will be the price target in next one month or year? Everybody likes to know about the future of stocks they owned. The methods used to predict the future price of a company’s stock falls into two broad categories:
1) Fundamental Analysis
2) Technical analysis.
Those who use technical analysis look for peaks, bottoms, trends, patterns and other factors affecting the stock price movement and then make BUY – SELL – HOLD decision based on those factors. It is a technique that many people attempt, but few are truly successful at it. The world of technical analysis is huge today. There are literally hundreds of different patterns and indicators that investors claim to have success with.
Technical Analysis is forecasting of future financial price movements based on an examination of past price movements. The main principle in technical analysis is “History always repeat it self”. Like weather forecasting, technical analysis does not result in absolute predictions about the future. Instead, technical analysis can help investors anticipating what is “likely” to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time.
Technical Analysis is not just drawing a line or watching chart it is an art. Art of predicting, art of profit making, art of listening to the chart. It gives wisdom, wisdom that whether I have to buy, sell or hold. It shows a path, direction and destination. However random walk theory says that stock market prices moves like a drunked person walking on the street. But it’s my belief that technical analysis helps you in decision making.
Technical analysis is a big deal because it involves individuals own skill of interpretation. It may so happen that every analyst may advice or gives you different advice or in other words no analyst are always correct. But using technical analysis knowledge one can really reduce their risk and make their investment decision more wiser and profitable one. It is not important to trade but it is important to improve profitable trade. Technical analysis helps you in improving profitable trades. A casino makes money on a roulette wheel, not by knowing what number will come up next, but by slightly improving their odds with the addition of a “0″ and “00″. That’s not gambling–it’s intelligence. Yet many investors buy securities without attempting to control the odds.
