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What is technical analysis?

Hi! When browsing blogs on finance, the phrase "technical analysis" still bounces my ears. What exactly is it, how does it work and how do you do this analysis? Could someone explain it to me in some simple language? Thanks

Hi! When browsing blogs on finance, the phrase "technical analysis" still bounces my ears. What exactly is it, how does it work and how do you do this analysis? Could someone explain it to me in some simple language? Thanks

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3 answers


waren20

Simply put, technical analysis is an analysis that is used to forecast changes in the share price in the future. It is performed on the basis of data from the past, e.g. charts of changes in share prices, order sizes, turnover values or technical indicators. Based on charts of stock prices from the past, you can learn about graphical price patterns (so-called technical patterns) that are assumed to have a tendency to repeat. On the other hand, technical indicators are indicators that characterize the current state of the stock market. It is important when analyzing these data to take into account all the factors that may or have had an impact on the development of demand and supply. Technical analysis is therefore a kind of short-term analysis of the profitability of investment in shares.

Simply put, technical analysis is an analysis that is used to forecast changes in the share price in the future. It is performed on the basis of data from the past, e.g. charts of changes in share prices, order sizes, turnover values or technical indicators. Based on charts of stock prices from the past, you can learn about graphical price patterns (so-called technical patterns) that are assumed to have a tendency to repeat. On the other hand, technical indicators are indicators that characterize the current state of the stock market. It is important when analyzing these data to take into account all the factors that may or have had an impact on the development of demand and supply. Technical analysis is therefore a kind of short-term analysis of the profitability of investment in shares.

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Zenon Bartkowiak

Technical analysis is a trading discipline used to evaluate investments and identify trading opportunities by analyzing statistical trends obtained from trading activities such as price movement and volume.

Unlike fundamental analysis, which tries to assess the value of a security based on business performance such as sales and profits, technical analysis focuses on price and volume studies. Technical analysis tools are used to study the ways in which the supply of and demand for a security will affect price, volume and suggested volatility. Technical analysis is often used to generate short-term trading signals from a variety of charting tools, but can also help to better assess the strength or weakness of a given stock in relation to a wider market or one of its sectors. This information helps analysts improve the overall valuation assessment.

Technical analysis can be used on any asset with historical trading data. These include stocks, futures, commodities, fixed income securities, currencies and other assets.

Technical analysis is a trading discipline used to evaluate investments and identify trading opportunities by analyzing statistical trends obtained from trading activities such as price movement and volume.

Unlike fundamental analysis, which tries to assess the value of a security based on business performance such as sales and profits, technical analysis focuses on price and volume studies. Technical analysis tools are used to study the ways in which the supply of and demand for a security will affect price, volume and suggested volatility. Technical analysis is often used to generate short-term trading signals from a variety of charting tools, but can also help to better assess the strength or weakness of a given stock in relation to a wider market or one of its sectors. This information helps analysts improve the overall valuation assessment.

Technical analysis can be used on any asset with historical trading data. These include stocks, futures, commodities, fixed income securities, currencies and other assets.

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OpenAI BOT
Technical analysis is a method of analyzing the financial market that involves examining price charts of financial assets to predict future trends. Technical analysis is based on the assumption that the price history of assets can help predict their future behavior. Various indicators and technical tools, such as moving averages, momentum indicators, and price patterns, are used for technical analysis. By conducting technical analysis, investors try to identify patterns and signals that will help them make better investment decisions.
Technical analysis is a method of analyzing the financial market that involves examining price charts of financial assets to predict future trends. Technical analysis is based on the assumption that the price history of assets can help predict their future behavior. Various indicators and technical tools, such as moving averages, momentum indicators, and price patterns, are used for technical analysis. By conducting technical analysis, investors try to identify patterns and signals that will help them make better investment decisions.

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