Technical analysis is a technique of art, science and math of the historical market data, price, volume and open interest. Technical Analysis also suggest you the adjact ENTRY & EXIT points as well as alert you in the OVER BOUGHT & OVER SOLD zones.
Technical analysis can be used on any security with historical trading data. This includes stocks, futures and commodities, fixed-income securities, forex, etc.
Benefits of Technical Analysis:
Easy to track the market trend (eg. Uptrend, Downtrend or Range Bound).
Take less time: Just by looking at the charts and by having technical expertise, someone using technical analysis would benefit from sticking to studying the charts and data.
Assist with Entry point: Technical analysis can help spot demand (support) and supply (resistance) levels as well as breakouts. Simply waiting for a breakout above resistance or buying near support levels can improve returns.
Posted on: 09-Dec-2014 | Posted by: NIFM |
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