There Appear to be conflicting views: charts will tell you about the market; or that they are useless and the only thing that is important is the principles (the numbers that indicate the strength of the company, nation, asset etc.. Price and earnings ratios etc.) I used to fit in to the latter segment, but now I think that both techniques are important: technical evaluation for timing, to help identify changes in investor sentiment and basically to generate a visual image of what’s occurred, momentum and trends. Critical analysis ought to not be dismissed.
Technical Investigation is the art/science of using charts to foretell the management of financial markets (i.e. using yesteryear to foretell the future). Various unique types of chart could be generated and patterns inside those charts, intersections of lines or other connections may be used to identify turning points, markets highs or lows, buying/selling opportunities etc..
Anthony Bolton (The United Kingdom equivalent of Warren Buffett? And essential investigation guru, currently working as a mentor in Fidelity) uses technical analysis to help identify market turning points and to period his investments — They conducted the Fidelity Special Situations and exceptional Values unit and investment trusts which were of the best investment money from the United Kingdom for 25 years (and still going strong)
This Editorial looks at a number of the various kinds of technical evaluation, how it may be utilized and where to acquire more knowledge. There is a gigantic range of methods and theories and lots of publications and web-sites on the topic, but I will cover a few of the basics here.
In the Realm of stock Analysis, fundamental and technical analysis are on completely opposite sides Of the spectrum. Characteristics to basic analysts, whereas technical analysts couldn’t Care less about these numbers. Which approach works best is constantly debated, and Many volumes of textbooks have been written on both of these methods. Thus, do Some studying and decide for yourself which approach works best with your investment philosophy.