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Month: June 2013

What is Technical Analysis?

What is Technical Analysis?

There are two major methods for analyzing stocks. One method is Fundamental analysis and the other is Technical analysis. Fundamental analysis analyzes demand and supply of a stock. It tries to explain why a price moved the way it did, and it is based on current demand and supply. Technical analysis is based on historical data. It can almost be described as identifying patterns, and applying the rules derived from the patterns to future price/volume movements. Technical analysts do not…

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