Technical analysis

Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

Technical analysis

Security analysis that seeks to detect and interpret patterns in past security prices.

Technical Analysis

The practice of using statistics to determine trends in security prices and make or recommend investment decisions based on those trends. Technical analysis does not attempt to determine the intrinsic value of securities, but instead focuses on matters such as trade volume, demand, and volatility. Technical analysts evaluate short-term trends almost exclusively, which is both a strength and a weakness in their analysis. They are sometimes called chartists because of the importance charts have in technical analysis. See also: Fundamental analysis.

technical analysis

The study of relationships among security market variables, such as price levels, trading volume, and price movements, so as to gain insights into the supply and demand for securities. Rather than concentrating on earnings, the economic outlook, and other business-related factors that influence a security's value, technical analysis attempts to determine the market forces at work on a certain security or on the securities market as a whole. Compare fundamental analysis.

Technical analysis.

Technical analysts track price movements and trading volumes in various securities to identify patterns in the price behavior of particular stocks, mutual funds, commodities, or options in specific market sectors or in the overall financial markets.

The goal is to predict probable, often short-term, price changes in the investments that they study, which allows them to choose an appropriate trading strategy.

The speed and accuracy with which the analysts create their tracking charts has been enhanced by the development of increasingly sophisticated software.

References in periodicals archive ?
Tradecision is a professional trading software application for charting, technical analysis and creation of trading systems.
Written in a straightforward and accessible manner, Chart Your Way to Profits, Second Edition not only explains technical analysis, but also provides readers with examples demonstrating how effective technical analysis can identify highly profitable trades.
In the second edition of Technical Analysis For Dummies, finance writer Barbara Rockefeller goes beyond the fundamentals of technical analysis to explain the new interest rates, looming bank crises, and adjusting market climates.
Easy-to-use, at-your-fingertips information on using technical analysis to trade all major financial markets
With the addition of technical analysis research, we are continuing our goal of building a research group that is unparalleled in providing clients with in-depth analysis and information.
Advanced Chart Patterns improves technical analysis by integrating real-time market data.
International Business Machine Corp (NYSE: IBM): Based upon fundamental and technical analysis, it is projected that over the next 5 weeks, IBM will rise to the level of $102.
Evidence-Based Technical Analysis is a breakthrough book in that it rigorously applies the scientific method and recently developed statistical tests to determine the true effectiveness of trading strategies, rules or systems discovered by data mining.
This market watcher uses a combination of fundamental and technical analysis to find attractive entry points.

Full browser ?