What is Technical Analysis

Technical analysis can be defined? Use analysis tools, through the historical prices to predict future price movements, their tools are often referred to as the price chart or charts. Technical analysis is applicable to all supply and demand is being affected by the impact of financial products, such as stocks, futures, commodities, indices and foreign exchange market.

Technical analysis is still originated by Charles Dow in the early nineteenth century invention of the Duchenne theory. Triple this theory include the following major principles: first, the price reflects all market behavior; second, the price changes followed a particular trend, but not completely random; third-, history will continue to repeat itself. Duchenne theory can be applied directly to a broad Dow Jones Industrial Average.

Technical analysts believe that current prices fully reflect all market information. Since all messages have been reflected in the price, the price represents a reasonable value and should be the base for analysis.

Analysts believe that the market there is a certain degree of random variation on the period of time, their price changes can not be predicted, but most analysts agree that the existence of which also, in its short period of non-random price changes, is available for analysis and predictable. Analysts also believe that market trends can be noted else, may be permitted to make investment and trading with the trend, the trend of changes in departure. As the technical analysis for different time periods can be used as short-term and long-term trend analysis, analysis of some of the details can be found in the chart.

All in all, technical analysis is by comparing the current and past stock prices to predict future price movements. This is based on history repeating 』『 theory.