Technical Analysis and Its Types
28-06-2024
Technical analysis is, in simple terms, a short-term analysis of the profitability of an investment in a stock based on charts of stock price movements, trading volumes, order sizes and technical indicators. It is used to determine the likely future movement of stock prices based on past assessments, taking into account all factors that have had or may have an impact on the supply and demand of stocks. One of its basic assumptions is that stock prices are determined by supply and demand. It is worth remembering that in the case of technical analysis, various tools and indicators are used. Beginner traders should familiarize themselves with the basic ones so that they do not overload themselves with knowledge at the very beginning. Next to fundamental analysis, AT is the most popular method of market analysis.