Technical analysis is the study of market action, mainly through the use of charts and indicators to forecast the future price of a security.
There are three main points that a technical analyst applies.
A. Market action discounts everything. Regardless of what the fundamentals are saying, the price you see is the price you get.
B. The price of a given security moves in trends.
C. The historical trend of a security will tend to repeat itself.
Of all of the above points, the most important is point A.
It is important for you to understand this point, as it is the basis of this approach to trading.
There are three main points that a technical analyst applies.
A. Market action discounts everything. Regardless of what the fundamentals are saying, the price you see is the price you get.
B. The price of a given security moves in trends.
C. The historical trend of a security will tend to repeat itself.
Of all of the above points, the most important is point A.
It is important for you to understand this point, as it is the basis of this approach to trading.
