Technical analysis is a trading discipline análise Forex to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Technical analysis can be used on any security with historical trading data. Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts.
Technical analysts believe past trading activity and price changes of a security can be valuable indicators of the security’s future price movements. Technical analysis may be contrasted with fundamental analysis, which focuses on a company’s financials rather than historical price patterns or stock trends. Technical analysis as we know it today was first introduced by Charles Dow and the Dow Theory in the late 1800s. Several noteworthy researchers including William P.
There are two primary methods used to analyze securities and make investment decisions: fundamental analysis and technical analysis. Charles Dow released a series of editorials discussing technical analysis theory. His writings included two basic assumptions that have continued to form the framework for technical analysis trading. This assumption is based on the idea that the market price reflects the sum total knowledge of all market participants. The second basic assumption underlying technical analysis, the notion that price changes are not random, leads to the belief of technical analysts that market trends, both short-term and long-term, can be identified, enabling market traders to profit from investing based on trend analysis.