Technical analysis is a trading discipline utilized to assess financial products by breaking down factual patterns assembled from trading activity, with an emphasis on price movement and volume.
Technical analysis is frequently used to produce immediate trading signals from different tools and techniques, but can also help improve the evaluation of a security’s strength or weakness relative to the entire market or any of its sector(s). This data assists speculators with further developing their general methodology to predict future price action.
Technical analysis proceeds to forecast the price of virtually all tradable instruments that are impacted by supply and demand which includes cryptocurrencies, stocks, futures, bonds and more.
* Journalist Charles Dow compiled and closely analyzed American stock market data, and published some of his conclusions in editorials for The Wall Street Journal. He believed patterns and business cycles could possibly be found in this data, a concept later known as “Dow theory”. However, Dow himself never advocated using his ideas as a stock trading strategy.
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