What is technical analysis?
According to INVESTOPEDIA: Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysts who attempt to evaluate a security's intrinsic value, technical analysts focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security's strength or weakness.
In my opinion technical analysis is a road map of price and volume over a period of time for a specific security, sector, or index. Patterns develop over time. I look for specific patterns to emerge when analyzing a specific security. Investing is dealing with the unknown as it relates to outcomes.We want to put the odds in our favor by using technical analysis or using charts to set buy and sell points.
It's like this. Would your dentist start to work on a problem tooth or perform regular cleaning without taking a peek at an X-ray? Of course not. I wouldn't initiate a position in a stock before looking at a chart. So when you see me sharing a chart with you during a review meeting, you will know why! Until next time.
All the best!!