Technical analysisis drawing conclusion from historical pricemovements. At first glimpse, previous price movements don’t say much about the future, but that isnot true.
What happened in the past, tend to repeat it at least in some form in future.
Technical analysis is a useful tool that can help understand previous price movements and make assumptions about future price movements.
Technical analysis logic is as follows:
1. Supply and demand determine prices,
2. Changes in supply and demand cause changes in prices &
3. Prices can be projected with charts and other technical tools.
In technical analysis six distinctive tools are used to make assumption about future price movement:
1. BAR CHARTS,
2. Analysis of PRICE AND VOLUME,
3. Chart patterns,
4. Technical indicators,
5. Understanding of sentiment &
6. Intermarket analysis.
Based on these six pillars professionals from Pick Finder are able to point out to possible price patterns that could occur in near future.