Technical Analysis of the Financial Markets

Among the various tools financial analysts utilise for market forecasting, there are basically two methods: fundamental and technical analysis. For a market analyst, whether fundamental or technical, there is a basic question: what are the factors which may influence market developments? Although we are intimately convinced that technical analysis is a valuable forecasting tool, we recommend to handle it with caution: this technique is not an exact science. Even the most professional technical analysis has some room left for unexpected market developments.

 

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Among the various tools financial analysts utilise for market forecasting, there are basically two methods: fundamental and technical analysis. For a market analyst, whether fundamental or technical, there is a basic question: what are the factors which may influence market developments? Instead of focusing on certain particular indicators and thus run the risk of omitting other important elements, technical analysts endeavour to interpret charts with methods which have now been well established for years and years, most of the time mathematical or geometrical.