In its purest form, technical analysis is the study of charts with the goal of determining future price actions. It shouldn't come as a surprise that talking about investing strategies brings up strong emotions among their practitioners. After all, people's money is on the line. But few topics draw the same polar degrees of ire and praise that technical analysis does. I refer to technical analysis as chart analysis as it is anything and everything we do on our price charts.
It is important to understand that the realm of technical analysis is not limited to charting. Technical analysis is always primarily concerned with price trends. Anything that can influence the price trend is of interest to a technical analyst.
Technical analysis is widely used among traders and financial professionals, and some studies say its use is more widespread than is "fundamental" analysis in CFD trading. Several academic studies suggest that…technical analysis may well be an effective means for extracting useful information from market prices.
Barry Norman The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.