Technical Analysis is the study of stock performance based on any
number of technical theories. These theories have been developed by many stock market analyst over
the years. One of the most noted theories is Bollinger Bands.
Simply put, Bollinger Bands are average price levels above and below the current price.
If the stock price crosses these levels then the analyst's interpretation suggest that you should either
buy or sell the stock in question.
There is no one theory that is always correct. As a trader, you
should learn to judge when a theory works for you. Some people pick one theory and use it
exclusively. Others use a combination of theories.
As always, we must caution you to do your research carefully. We
have often found that when the market is very volatile, technical analysis doesn't work for us while
other traders believe that technical analysis is the only way to judge a stock.
Be careful, buyer beware.
Below, you will find major portions of the book on Technical Analysis brought to you free by Equis
International. Just click on the title to go to that subject.
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