Stock Technical Analysis Fundamentals Technical Analysis
Post on: 16 Март, 2015 No Comment
Stock Market Technical Analysis Charts
Stock Technical Analysis Fundamentals
The stock market technical analysis fundamentals are based upon the crowd theory. ie: In any arena where there is mass participation, there is a very strong possibility that events will follow similar patterns of behavior that were created on previous occasions, where a similar set of circumstances were in place.
Technical traders look for these repetitive and recognizable patterns of behavior that are created as a result of this herd mentality within the various degrees of time. Stock technical analysis is the study of the market data for the signs of any of these repetitive patterns in market behavior.
We can then use the analysis to our advantage by using it to help us to improve the odds within our trading.
Financial Technical Analysis Guide
Understanding Stock Charts
Fibonacci Numbers Sequence
Stock Technical Analysis vs Fundamentals Analysis
Fundamentals analysts try to determine the future movement of a stocks share price by studying all aspects of the companys business to estimate the intrinsic value of the stock. They will use this estimate to decide if it is currently undervalued and worth buying or not.
The biggest drawback in fundamental analysis is the sheer volume of information that the analyst has got to delve through to reach a conclusion. This severely limits the quantity of potential investments that the average trader or investor can do a full analysis study on.
Supply and demand for the products, earnings statements, costs analysis, cash flow, future growth potential etc are all considerations for the fundamentals analyst and the small traders like us are usually the last to know when any surprise news item hits the headlines.
Stock technical analysis charts enable technical analysts to spot the possibility of a repeating trend or price pattern by studying their stock technical analysis fundamentals for evidence of how the market is behaving at any given point in time.
Since the stock technical analysis fundamentals are based on that premise that the collective moods and emotions of the markets produce the same human reactions time and again, the technical analyst can follow a far wider range of potential investments for trading opportunities as the same methods can be applied to almost any stock market technical analysis chart.
