Technical Analysis - Introduction

The methods used to analyze and predict the performance of a company's stock traditionally fall into two broad categories: fundamental and technical analysis (Schaeffer’s considers sentiment analysis to be a third, and at least equally important, component). Those who use technical analysis look for peaks, bottoms, trends, patterns and other factors affecting a stock's price movement and then make buy/sell decisions based on those factors. It is a technique many people attempt, but few are truly successful at it.

The world of technical analysis is huge today. There are literally hundreds of different patterns and indicators that investors claim to have success with. We have tried to keep this tutorial as short as possible. Our goal is to introduce you to the different types of stock charts and the various technical analysis tools available to investors.