Research and Analysis
Technical analysis is the study of price action in markets through the
use of charts and quantitative techniques to attempt to forecast price
The techniques can be applied to any market with a comprehensive price
history. Technical analysis does not try to analyze the financial data of a
company, such as cash flow, dividends, and projection of future dividends;
because of this lack of fundamental analysis, technical analysis is
sometimes derided by critics as having no predictive qualities. Technical
analysts or technicians often counter with an industry favorite analogy: A
fundamental analyst gives an hour long description of a company's financial
health to a potential investor. Pleased with his presentation, the analyst
asks, "Are there any questions?" The investor replies, "So is the stock
price going up or down?"
Technical analysis is less concerned with why a price is moving (poor
earnings, difficult business environment, poor management, etc. or other
fundamentals) than it is on the fact that the price is consistently moving
in a particular direction. To a technician, profits can be made in any
market by positioning yourself in the direction of the price trend. If the
price trend is up, then look for opportunities to buy, if the price trend is
down, then look for opportunities to sell.
So far, we have found that a useful tool for technical analysis is
Point and Figure
contact us for
advertisement information and other matters.