Technical analysis simply refers to the study of price action charts, though there are many variations upon that general theme. Nay Sayers will state that there is no way a price chart (or any other permutation derived from it) can be used to predict market action. However, without a review of a stock's chart, would anyone feel comfortable buying or selling? Encompassed within that simple price chart is the whole gamut of market emotions: fear, greed and complacency. Technical analysis is simply a set of tools used with the goal of discerning some sense of order out of this volatile stew.

Source: http://www.investorguide.com/igu-article-834-technical-analysis-technical-analysis-a-potential-lifeline.html

Tags: technical analysis, emotions

  

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