I was told that technical analysis does not work and that I should not follow it. I was told that the same patterns that show up in technical analysis show up in rain charts and stuff and so it's totally bogus. My question is what exactly is technical analysis and how does it differ from fundamental analysis?
When you do fundamental analysis on a stock you look at a stock's earnings and SEC reports. You follow news about the company and about the economy as a whole. You use this information to try and predict the future price action of that stock.
When you do technical analysis on a stock you look at the history of a stock's price and volume on a chart. You determine support and resistance levels. You look for bullish and bearish patterns in the chart. You use this information to try and predict the future price action of that stock.
Your only hope, as a guerilla fighter against the better armed institutional investors, is to know both fundamental and technical analysis. You can no longer survive for very long just using one and excluding the other.
I was told that technical analysis does not work and that I should not follow it. I was told that the same patterns that show up in technical analysis show up in rain charts and stuff and so it's totally bogus. My question is what exactly is technical analysis and how does it differ from fundamental analysis?
When you do fundamental analysis on a stock you look at a stock's earnings and SEC reports. You follow news about the company and about the economy as a whole. You use this information to try and predict the future price action of that stock.
When you do technical analysis on a stock you look at the history of a stock's price and volume on a chart. You determine support and resistance levels. You look for bullish and bearish patterns in the chart. You use this information to try and predict the future price action of that stock.
Your only hope, as a guerilla fighter against the better armed institutional investors, is to know both fundamental and technical analysis. You can no longer survive for very long just using one and excluding the other.
I was told that technical analysis does not work and that I should not follow it. I was told that the same patterns that show up in technical analysis show up in rain charts and stuff and so it's totally bogus. My question is what exactly is technical analysis and how does it differ from fundamental analysis?
When you do fundamental analysis on a stock you look at a stock's earnings and SEC reports. You follow news about the company and about the economy as a whole. You use this information to try and predict the future price action of that stock.
When you do technical analysis on a stock you look at the history of a stock's price and volume on a chart. You determine support and resistance levels. You look for bullish and bearish patterns in the chart. You use this information to try and predict the future price action of that stock.
Your only hope, as a guerilla fighter against the better armed institutional investors, is to know both fundamental and technical analysis. You can no longer survive for very long just using one and excluding the other.
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