Monday, April 17, 2006

What does technical analysis mean in stocks

Technical analysis is a means to predict stock prices by looking at patterns in the chart. As many will tell you, this is an art.

I learnt about technical analysis from Investopedia. Click here to start the Technical Analysis tutorial.

If you can predict the direction a stock price is going, you have the potential to make money in the market. Learn this art as it can only pay off. However, technical analysis works better when combined with fundamental analysis as pointed out by the tutorial too.

Please make sure you understand the very basics of technical analysis from the tutorial - RSI, MFI, Bollinger Bands, Support/Resistence levels. I'm thinking I'll be using those words in my blogs quite a bit as they make sense. Make sure you have a good feel for what they mean.

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