technical analysis
DefinitionA 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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technical analysis is ...
... part of the Strategies, Technical Analysis and Investor Relations subjects.
... part of the Strategies, Technical Analysis and Investor Relations subjects.
... an essential investing term.
Related Terms
point-and-figure chart, resistance, ascending bottoms, ascending tops, descending bottoms, descending tops, breadth-of-market theory, breakout, chartist, cup and handle and
technical analysis appears in the definitions of these other terms on BusinessDictionary.com
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