Technical Analysis Of Stocks

Technical analysis is the study of the internal stock exchange information and not of those external factors which are reflected in the stock market.

Technical analysis of stocks. Behavioral economics and quantitative analysis use many of the same tools of technical analysis which being an aspect of active management stands in contradiction to much of modern portfolio theory. Technical analysis of stocks and trends is the study of historical market data including price and volume to predict future market behavior. Price data or as john murphy calls it market action refers to any combination of the open high low close volume or open interest for a given security over a specific timeframe. All the relevant factors whatever they may be can be reduced to the volume of the stock exchange transactions and the level of share price or more generally the sum of the statistical information produced by the market.

It utilizes various charts and statistical indicators to determine price support resistance range and trends. Technical analysis is the interpretation of the price action of a company s underlying stock or any tradable financial instrument.