Technical_analysis

Technical_analysis - Technical analysis Use past price...

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Technical analysis Use past price movements and volume to predict the future movement in the markets. This is an attempt at seeing unfolding patterns in the data to get some indication of the future path of the security or asset. Simple Approaches 1. Support and Resistance, and pattern recognition. Chart Reading originally looked for patterns that seem to occur over and over again and therefore could be counted on in the future. For instance is the price of a stock or index fall to a level and then buyer come in, this is called a support level. Currently looking at the S&P 500 chart, support seems to be found between the prices of 1489 to 1500, and therefore when the market falls buyers will come in at that level since the index should not fall lower than that level. Resistance is the same on the upside. In addition there are a wide variety of patterns such as flags, head and shoulder formations, island reversals, triangles, gaps, trend lines, and channel to name a few. 2. Trend analysis (mathematical approach)
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This note was uploaded on 11/23/2009 for the course FIN 5180 taught by Professor Rader during the Fall '09 term at Temple.

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Technical_analysis - Technical analysis Use past price...

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