Prof. Tyler yamazaki


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Technical Analysis
Technical Analysis is a good approach to go for, here we will cover a few of
the basic ones. Anyone who picks this kind of trading strategy has to use
charts in order to examine the whole history of the Stocks, take the time to
observe indicators and patterns that are on screen, and then make the best
educated decision out of it.


There are a few different indicator groups that you can use in Technical
Analysis. Some of these include:
Strength indicators: these are the indicators that compares your
current price to that of its history. This helps to show how weak
or strong the Stock will be. The Relative Strength Indicator is the
most common one to use with this. Often it is shown at the top of
your charts and it will indicate any overbought as well as
oversold price conditions. Many a times this can be a tip for
helping you to buy and sell at the right price for a Stock.
Moving averages: these are known as MA’s, and they are
indicators that generated by averaging out the price levels over
time. These can help you to see how often the movements of the
Stock are either below or above their averages. These are known
as crossovers and can sometimes indicate breakdowns and
breakouts as well.
Pattern analysis: this is the evaluation of your charts in order to
identify price formations, such as shapes, that come up in the
historical data. Sometimes you will see wedges, triangles, cups,
handles, and more for the Stock you want to trade with. These
formations can sometimes show you a glimpse of the future and
determine if there will be any downward or upward movement.
Range analysis: this is where you are going to use a few different
things together; including price range, closing prices, and
opening prices in order to figure out where your resistance and
support levels are. These can help you to figure out where the
best purchase as well as sell points are, among other information,
such as the levels of a breakdown and breakout with the Stock.
All of these indicators will help you, in one way or another, to figure out
when is the best time to enter the market, how long to hold onto the Stock,
and when to let them go in order to make the biggest profit possible while
limiting your losses. There main benefit in adopting Technical Analysis
includes:
There are alot people who are on the forums and the boards who
will help you in learning how to use TA and will talk to you


about how to identify these hot Stocks.
It goes without saying, there are a few cons that you will need to worry
about. Some of these cons include:
Bashers and pumpers can make almost all charts look like they
are negative or positive, in the hopes of luring investors without
experience into performing the action that they want.
Using a technical analysis can be hard. It is complex and hard for
some people to understand.

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