What is Technical Analysis? |
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What is Technical Analysis?

December 17, 2018

Technical analysis is a method of predicting the price movement of a share price in near future on the bases of its past performance. Technical analysis firstly introduced by Charles Dow in 1800 late. After Charles Dow many researchers has contributed in it and made it successful with the help of many indicators, patterns, and signals. Technical analysis experts think that past fluctuation of a share price determine the future price of a stock if all the things are equal. They use the technical indicator for further price determination and may use some fundamental analysis also. But major results of their research are based on statistical data of past performance. MTA is the major technical analyst group supports them and CMT is the certification for technical analysis course.
Charles Dow has given the two basic assumptions of technical analysis. The market price of a security at any given point reflects all the market information available for a security. Assumptions are mainly focused on true information that can be news or statistical information about the security.
How Technical Analysis used
Technical analysis is a forecast pattern for price movement of a security which is generally able to buy and sell in secondary market. Some analyst understands it the study between demand and supply which is reflected in price movement. Technical analysis majorly applies to price changes but some analyst makes a study on volume factor also. Across the world, thousands of patterns and indicator are used in markets which are developed by researchers. Experts also developed the trading system to help the analysts. Many indicators are used to find the price pattern and support resistance. Some focus on trend strength and weakness. Chart pattern, moving average, trend line and channels are commonly used indicators.
About the Author
This article is written by Mr Yatharth Dass, a young entrepreneur and trader. He is a CEO of PTA Coaching which is the best share market training institute in Delhi. You can also learn technical analysis courses in Delhi from our institute.

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