Technical analysis is one of the main strategies which enable one to find and take advantage of stock market opportunities. The
strategy is a success thanks to its easy utilization, and its simplicity. Moreover, the benefits it provides are immediate and real. This strategy has been researched and improved for over 400 years, and guides countless investors on a daily basis.
Its increasing popularity generates better and more accurate results. That’s because graphs predictability drives more investor buy or sell, which in its turn fulfills the graph’s prediction.
Some tend to use technical analysis combined with other strategies (such as fundamental analysis). Others prefer using technical analysis alone, relying on the assumption that market circumstances are always reflected on stock trade values.
First thing we have to understand is that the market often operates irrationally. The good news is that its irrationalities are consistent. Price movements in the market follow certain trends. These trends
repeat themselves and can be identified on the stocks’ graphs. Therefore, when we take into account the stock values in the past, we can statistically anticipate stock’s behavior in the future. In that sense, it is certainly worthwhile to analyze past economic performance.
Many of these market fluctuation patterns have been found and identified already. All we have to do in order to better exploit the market is to notice them, and act in accordance with them. In order to recognize these patterns there are special graphs and methods, all of which are covered by this guide.
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