Definition of Technical Analysis

What is Technical Analysis

Technical analysis is a method of analyzing and predicting future price movements based on an asset’s past patterns of price change, rates of change and changes in volume of trading and open interest.

Some of the key tools used in technical analysis include moving averages and Bollinger bands, which use support and resistance levels.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Bollinger Bands

Fundamental Analysis

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