chpt16 - TechnicalAnalysis Chapter16...

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1 Technical Analysis Chapter 16 Jones, Investments: Analysis  and Management
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2 What is Technical  Analysis? Use of published market data for  analysis of both aggregate stock  prices and individual stocks May produce insight into the  psychological dimensions of the  market Used by investors and investment  advisory firms Oldest approach to stock selection
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3 Technical Approach Prices move in trends determined by  changing attitudes of investors Identify change in trend at an early  stage and maintain investment posture  until evidence indicates otherwise Market itself is own best source of data  about trends Data includes prices, volume, and  technical indicators
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4 Technicians disagree with  fundamental analysis because they  believe it is extremely difficult to  estimate intrinsic value and to obtain  and analyze information consistently Technicians believe market data indicates  forces of demand and supply Record of investor mood that can be  detected and is likely to continue  Technical Approach
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5 Tools For Technical  Analysis Use of graphs, charts, and technical  trading rules and indicators Price and volume primary tools of the  pure technical analyst  Technicians use charts to identify trends  and patterns in stock prices that provide  trading signals Volume data used to gauge market  condition and to assess its trend 
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6 The Dow Theory Based on three types of price 
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This note was uploaded on 04/20/2010 for the course FCBA MBA608 taught by Professor Dr. during the Spring '10 term at Baptist College of Health Sciences.

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chpt16 - TechnicalAnalysis Chapter16...

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