10 Tips to Getting Started With Technical Analysis

• »

In this market, traders need to use every tool available to make sure they grab profits where and when they arrive. The methodology that I use to make successive triple-digit-percentage returns over the years is technical analysis.

Technical analysis is the practice of anticipating price changes of a financial instrument by analyzing prior price changes and looking for patterns and relationships in price history. It is founded on the principle that stock prices move in trends. Prices do not continue in a trend in perpetuity. When prices change direction, the move seldom comes cleanly and unequivocally. Prices tend to move back-and-forth, zigzagging up and down, as investors try to analyze the market and arrive at new price expectations for the stock.

Next: Taking the Guesswork Out of Investing