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Flashcards in CH1 Overview of Technical Analysis Deck (12)
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1

analyzing historical market activity and investor behaviour to determine future price trends.

Technical Analysis

2

1-market influences are fully reflected in market prices
2-Prices move in trends
3-Th e future can be found in the past
are the

Technical Analysis three assumptions

3

analyzing the factors that could influence the prices in the future

fundamental analysis

4

the primary task of a technician is to identify

a trend

5

the process of analyzing an asset’s historical prices and investors’ actions to determine probable future prices.

Technical analysis

6

The major difference between technical and fundamental analysis is that the technician studies the ........ of supply and demand—that is, price, volume, sentiment, and open interest over time—while the fundamental analyst studies the .......... of price movements.

effects - causes

7

1-Chart analysis
2-Quantitative analysis
3-Sentiment analysis
4-Cycle analysis

TECHNICAL ANALYSIS METHODOLOGIES

8

is a form of technical analysis that has been greatly enhanced by the growing sophistication of computers. There are two general categories of statistical tools: moving averages and oscillators. They are used to supplement chart analysis, either by identifying (or confirming) trends, or by giving an early warning signal that a particular trend is starting to lose momentum, and may therefore change

Quantitative Analysis

9

focus on investor expectations. Contrarian investors use these indicators to determine what the majority of investors expect prices to do in the future, and they then do the opposite.

Sentiment indicators

10

helps forecast when the market will start moving in that direction and when the ultimate peak or trough will be achieved

Cycle Analysis

11

is the use of graphical representations of any data that could potentially be relevant to analyze a market trend. The purpose of a chart is to get a visual sense of where the market has been in order to try to project where it may be going

Chart analysis

12

1- the timing of market entry and exit points
2-Price Forecasting
3-Leading Indicator

BENEFITS OF TECHNICAL ANALYSIS