Technical Analysis of Stocks

For some of you who don't know what is technical analysis and how it works, I will try to explain it to you what it is about. Technical analysis is trading and investing tool that involves the study of past share prices or indices and is helpful in showing you when to enter and exit the trade. For technical analysis are needed charts. One example of chart you can see in the picture below. It's chart of Apple.




The dedicated technician analyses the charts and indicators to forecast future share price and index movements. There are traders whose trade decisions are based strictly on price and volume movement and there are traders who also use other tools like fundamental analysis to support their decisions and I belong to this second group. But technical analysis is essential for my trading.

In future posts I will go into more depth and I will write about charts, indicators, chart patterns, etc.