A Publication of WTVP

Technical analysis" or "charting" are methods of evaluating the stock market. Technical analysis proposes that previous price movements, properly interpreted, can indicate future price patterns. However, past performance isn't a guarantee of future results. When combined with sound fundamental analysis, technical analysis may help investors and their financial advisors make wise stock decisions. Below are several commonly asked questions about technical analysis.

Q. How do analysts evaluate and predict price movements?
A. Technical analysts use charts or computer programs to identify and project price trends in markets, securities, or commodity futures. Most technical analysis is done for the short or intermediate term, but some technicians also predict long-term cycles based on charts and other data. Unlike fundamental analysis, technical analysis isn't concerned with the financial position of a company.

Q. What do technical analysts look for?
A. When viewing charts from the technical perspective, technical analysts usually check the following seven factors: