Technical Analysis – Definition and Other Information
Post on: 16 Май, 2015 No Comment
Technical analysis is the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends.. In its purest form, technical analysis considers only the actual price behavior of the market or instrument, based on the premise that price reflects all relevant factors before an investor becomes aware of them through other channels.
Technical analysis is widely used among traders and financial professionals, and some studies say its use is more widespread than is fundamental analysis in the foreign exchange market. Academics such as Eugene Fama say the evidence for technical analysis is sparse and is refuted by the efficient market hypothesis, yet some Federal Reserve and academic studies include evidence that supports technical analysis. MIT finance professor Andrew Lo argues that several academic studies suggest that…technical analysis may well be an effective means for extracting useful information from market prices.Burton Malkiel argues, Technical analysis is anathema to the academic world.
Other Resources:
- The Globe And Mail: A method of evaluating future security prices and market directions based on statistical analysis of variables such as trading volume, price changes, etc. to identify patterns. More…
