| Did you know that the stock market has been in | | | | are all accounted for in the market naturally. |
| business for over two hundred years? During that | | | | In order to properly execute your stock technical |
| time, thousands of companies have gone public, | | | | analysis strategy, it's important to realize that you're |
| made enormous amounts of money, closed, and | | | | going to have to spend some time getting to know |
| opened again. All this has resulted in massive price | | | | and love the stock charts. These are typically |
| movements that have manifested themselves as tiny | | | | electronic charting and tracking systems that can be |
| increases and decreases in value that take place one | | | | programmed to follow the stocks that you're |
| day at a time. Many new investors find the stock | | | | interested in, or an entire stock index, like the Dow |
| market fluctuations unnerving, but experienced | | | | Jones Industrial Average. As you start to observe |
| traders know that without them, there would be no | | | | each day's data, you'll start to see that stock prices |
| opportunity for profit. Stock technical analysis is one | | | | are constantly moving up and down, and that over |
| of the most important ways that traders track and | | | | time, these fluctuations form trends and patterns |
| interpret these prices changes, and use them as a | | | | that can be identified and analyzed. |
| way to make better decisions about the future. | | | | Because stock technical analysis is based on the |
| If you're unfamiliar with the practice of stock | | | | assumptions that the stock market is inclined to |
| technical analysis, you should now that it is a method | | | | move in trends, and that a stock's history is destined |
| for monitoring stock price movements over time, in | | | | to repeat itself, these patterns become one of the |
| order to identify patterns that hold clues about which | | | | most important tools in a technical analyst's toolbox. |
| way the price of the stock is likely to move in the | | | | With the help of established patterns, analysts can |
| future. Technical analysis is quite a bit different from | | | | make educated predictions about which direction a |
| fundamental analysis, the other popular method for | | | | stock is likely to move in the future, simply because |
| investigating the value of certain stocks. Instead of | | | | they have seem the pattern play out many times in |
| concerning themselves with economic influences and | | | | the past. This can prevent traders from making |
| public perception of publicly traded companies, | | | | costly mistakes or holding on to a stock for too long. |
| technical analysts believe that these outside factors | | | | |