technical analysis

technical analysis
Anticipating future price movement using historical prices, trading volume, open interest and other trading data to study price patterns. Chicago Board of Trade glossary
Technical analysis uses charts to examine changes in price patterns, volume of trading, open interest, and rates of change to predict and profit from trends. Someone who follows technical rules (called a technician) believes that prices will anticipate changes in fundamentals. The CENTER ONLINE Futures Glossary
Security analysis that seeks to detect and interpret patterns in past security prices . Bloomberg Financial Dictionary
The study of historical price patterns to help forecast futures prices. Chicago Mercantile Exchange Glossary
The study of past and current price movements in order to be able to predict future price movements, technical analysis focuses on the identification of patterns and trends in the market, often using charts and other statistical techniques. Technical analysis, unlike fundamental analysis, does not look at fundamentals such as macro-economic factors. Whilst the validity of technical analysis is often questioned by those using fundamental analysis, technical analysis is often used by traders for short term trading decisions, as it does allow the trader to take account of the psychology of the markets, in other words, how other market participants are likely to act and react to market conditions. Dresdner Kleinwort Wasserstein financial glossary

* * *

technical analysis technical analysis analysis

* * *

   is a method of predicting the future direction of prices by studying charts of past market action. Technical analysts, or chartists, try to predict future prices on the basis of how prices move up and down, rather than why they have moved.
   They pay close attention to recurring patterns in charts of price action and look at trends, and at the speed of change and the momentum.
   The analysts use four basic types of charts - line, bar, candlestick, and point and figure - and a large number of technical theories and indicators including Elliott wave theory, RSI, moving average convergence/divergence and stochastics.
   1 A line chart is the simplest form of chart. It is a plain record of a price charted against time with the changes marked as dots and joined together by a line.
   2 A bar chart represents price information on a vertical bar. The top of the bar is the highest price and the bottom of the bar the lowest. A dash on the left-hand side of the bar denotes the opening price and a dash on the right-hand side the closing price.
   A candlestick chart captures the same price information as a bar chart: the open, high, low and close. A thick box (known as the body of the candle) joins the open and close values. Thin lines on either end of the body (known as shadows)
   join the high and low prices. If the opening value is higher than the closing value, the body of the candle is solid or coloured. Conversely, if the close is higher than the open then the body of the candle is clear, white or unshaded.
    A point and figure price chart captures pure price movements with no regard for time or volume. Rising prices are denoted by a column of Xs and falling prices by a column of Os. Subsequent columns are placed to the right of earlier columns.
   Chartists make particular use of trendlines, which connect areas of specific price action. Both uptrends and downtrends are defined as trends that can be drawn on a chart by joining a minimum of four points. Chartists also look for peaks and troughs and for patterns in price behaviour, such as head and shoulders, double top and triple bottom.
   They watch for speedlines, which measure the rate of change, and patterns in price lines which form flags or pennants. They also check for areas of resistance and support in price patterns, signs of corrections or breakouts, and for gaps when prices have jumped or fallen so quickly that there is a gap in the price points on a chart.
   Channels can be drawn on charts to provide clear guidance when prices have moved outside a trading range. Chartists also look for patterns in the number of rises and falls in a market, using retracements to provide evidence to support Dow theory and Gann, Fibonacci and Elliott wave analyses.
   Chartists rely heavily on relative strength indices, momentum, moving averages and on MACD or moving average convergence/divergence. The following definitions of technical analysis terms are defined and explained under their own entries.
   Accumulation/Distribution Analysis Line Chart
   Alexander's Filter Momentum
   Alpha Money Flow Index
   Bar Chart MACD Moving Average
   Beta Moving Average
   Bollinger Bands Moving Average Crossover
   Breakout On Balance Volume
   Broadening Oscillator
   Candlestick Chart Patterns
   CAPM Peaks/Troughs
   Channel Lines Point and Figure Chart
   Charting Price Channel
   Chart Points Quantitative Analysis
   Chartist Rectangle
   Continuation Relative Performance
   Convergence/Divergence. Relative Strength
   Correction Retracement
   Correlation Reversal
   Counter Clockwise Reversal Day
   Cylinder Relative Strength Index
   Double Top/Bottom Sharpe Ratio
   Downtrend Sortino Ratio
   Exponential Moving Average Speedline
   Failure Swing Stochastics
   Fibonacci Numbers Support
   Flags/Pennants Three Box Reversal
   Floor Top Reversal
   Gann Trendline
   Gap Triangles
   Geometric average Triple Top/Bottom
   Head and Shoulders Uptrend/Downtrend
   High Low Open Close, HLOC Wedges
   Kairi Williams Percent R

* * *

technical analysis UK US noun [U] STOCK MARKET, FINANCE
a method used to calculate the future value of shares by studying the patterns of their past behaviour rather than the fundamentals (= profits of companies whose shares are traded, the real economy, etc.): »

Are these tools used by most traders or is it just a minority who go in for technical analysis?

technical analyst noun [C]

Technical analysts say we have not yet seen the top of the current market.

Financial and business terms. 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • Technical analysis — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Technical analysis — Security analysis that seeks to detect and interpret patterns in past security prices. The New York Times Financial Glossary * * * technical analysis technical analysis ➔ analysis * * *    is a method of predicting the future direction of prices… …   Financial and business terms

  • technical analysis — noun (stock exchange) analysis of past price changes in the hope of forecasting future price changes • Syn: ↑technical analysis of stock trends • Topics: ↑stock exchange, ↑stock market, ↑securities market • …   Useful english dictionary

  • technical analysis — techninė analizė statusas T sritis Standartizacija ir metrologija apibrėžtis Analizės metodai, kuriais tiriamos techninės paskirties medžiagos. atitikmenys: angl. technical analysis vok. technische Analyse, f rus. технический анализ, m pranc.… …   Penkiakalbis aiškinamasis metrologijos terminų žodynas

  • technical analysis — techninė analizė statusas T sritis chemija apibrėžtis Analizės metodai, kuriais tiriamos techninės paskirties medžiagos. atitikmenys: angl. technical analysis rus. технический анализ …   Chemijos terminų aiškinamasis žodynas

  • technical analysis — techninis nagrinėjimas statusas T sritis Gynyba apibrėžtis Aiškinant vaizdus – tikslus vaizdų ar nuotraukų detalių aprašymas. atitikmenys: angl. technical analysis pranc. analyse technique …   NATO terminų aiškinamasis žodynas

  • Technical analysis software — automates the charting, analysis and reporting functions that support technical analysts in their review and prediction of financial markets (eg. the stock market). Description of Technical Analysis Software FeaturesThe following are descriptions …   Wikipedia

  • Technical Analysis of Stocks & Commodities — The Traders’ Magazine is a U.S. based monthly magazine about commodity futures contracts, stocks, options, derivatives and forex.It was established in 1982 and today covers global industry trends, prominent people, trading technology, managed… …   Wikipedia

  • Technical Analysis of Stocks and Trends — The academic study of historical chart patterns and trends of publicly traded stocks. Technical analysis of stocks and trends employs the use of tools such as bar or candlestick charts and trading volumes to determine the future behavior of a… …   Investment dictionary

  • technical analysis of stock trends — noun (stock exchange) analysis of past price changes in the hope of forecasting future price changes • Syn: ↑technical analysis • Topics: ↑stock exchange, ↑stock market, ↑securities market • Hypernyms: ↑ …   Useful english dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”