Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The practice of using statistics to determine future trends in security prices and make or recommend investment decisions based on those expected trends. Technical forecasting does not attempt to determine the intrinsic value of securities, but instead focuses on matters such as trade volume, demand, and volatility. Technical forecasters evaluate short-term trends almost exclusively, which is both a strength and a weakness in their analysis. See also: Fundamental Analysis.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved