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technical analysis


Definition
A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Unlike fundamental analysis, the intrinsic value of the security is not considered. Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables. Technical analysis assumes that market psychology influences trading in a way that enables predicting when a stock will rise or fall. For that reason, many technical analysts are also market timers, who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock.

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9 Tricks of the Successful Trader (3 of 9)Choose a methodology and then be consistent in its application. Before you enter any market as a trader, you need to have some idea of how you will make decisions to execute your trades. You must know ... Read more


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