What is technical analysis

What is technical analysis

Technical analysis is a method for analyzing tradable assets in order to predict future price movements. Technical analysis attempts to interpret market psychology by analysing the balance between supply and demand, i.e. the balance between buyers and sellers. Technical analysis is only interested in supply and demand, and only uses historical price and volume movements.

Technical analysis therefore only uses various price charts and indicators in order to analyse supply and demand. Technical analysis uses the same principles and analysis tools for all financial markets.

Price is a continuous struggle between buyers and sellers. When there is a surplus of buyers, i.e. rising demand, the price rises. When there is a surplus of sellers, i.e. rising supply, the price falls.

Technical analysis is about being on the right side of the market. If demand will rise, you want to buy early. If supply will rise, you want to sell early.

Why does technical analysis work?

The foundation of technical analysis is the fact that price movements are not entirely random. Had they been, it would not have been possible to predict any price movements.

Price movements make patterns, i.e. trends and formations, that can be identified. And these patterns repeat themselves. Technical analysis attempts to identify trends and price formations in order to use the patterns for e.g. stock trading.
Identifying a rising trend allows you to find good buying opportunities when rising prices are expected in the future. And similarly to find good sales opportunities when falling prices are expected in the future.

Price movement patterns repeat themselves because investors’ psychological mechanisms do not change. Therefore a price formation, for example, indicates a specific price movement.

Fear of losses and greed for profit have always influenced people in various markets. Technical analysis attempts to determine which sentiment is currently valid for which market, ranging from fear to greed.

Why Investtech?

  • Investtech offers automatically generated technical analyses of stocks, indices, commodities and currencies.
  • Investtech’s analyses are objective and consistent because they are done by mathematical algorithms in computers.
  • The analyses are time-saving.
  • Investtech’s analyses have been proven to give good return over time.
 


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

Titlex

OK
+

Om cookies

Investtech använder cookies. Genom att fortsätta surfa på webbplatsen accepterar du vår användning av cookies. Läs mer om cookies.

Vår användning av cookies/h2>

När du använder vår webbplats lagrar vi en cookie på din enhet. Cookien används för att känna igen din enhet så att dina inställningar fungerar när du använder vår webbplats. Informationen som lagras är helt anonymiserad. Cookies raderas automatiskt efter en viss tid.

Nödvändiga cookies

Investtech använder cookies för att säkerställa grundläggande funktioner som sidnavigering och språkval. Utan sådana cookies fungerar inte webbplatsen som den ska. Du kan därför inte reservera dig mot dessa. Om du fortfarande vill inaktivera sådana cookies kan du göra det i din webbläsarinställningar. I inställningarna för Cookies lägg till denna webbplats i listan över webbplatser som inte får spara cookies på din enhet.

Cookies från Google

Vi använder tjänster från Google Analytics och Google AdWords. Dessa registrerar cookies på din enhet när du besöker vår webbplats. Google registrerar din IP-adress för att kunna föra statistik över användaraktivitet på webbplatsen. IP-adressen är anonymiserad, så att vi inte har någon möjlighet att koppla aktiviteterna till en specifik person. Vi använder denna statistik för att kunna erbjuda mer intressant innehåll på hemsidan och för att ständigt förbättra oss. Google AdWords samlar in data så att vår annonsering på andra webbplatser ger bättre resultat. Vi kan inte spåra personuppgifter.

Tillåt cookies från Google