Technical Analysis Technical Market Indicators

Technical Analysis and Emotions

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.