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Technical stock analysis, developed by Mr A. Charles Dow in 1897, has been continuously refined for more than a century. The basic principle of technical analysis is: all necessary information about a stock is contained in its chart. Other sources of information are unnecessary or even objectionable. Technical analysis examines the charts of the past, interprets them and from these past characteristics calculates the likely
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future trend. Stock prices behave similarly to oil tankers, it is quite possible to get them moving in one direction, but once in motion, it is difficult to stop or reverse them. Technical analysis makes use of this fact: Sell and Buy orders are not given until an up- or downtrend has stopped. The trend is your friend that is the world from a technical analysis point of view. » Read more here
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