Stock Market Technical Analysis 

Technical Analysis Explained

Stock Market Technical analysis

Stock market technical analysis is the study of past market data statistics for patterns and trends in the activity of stock markets for the purposes of forecasting future price movements of stocks, commodities, futures and forex etc.

Technical analysts believe that the market is always right, so all relevant information is reflected in the price and historical price patterns tend to repeat as traders and investors will have the same collective emotions and reactions to events that previous traders and investors had.

How Does Stock Market Technical Analysis Work

Human nature being what it is means that however individually minded we each are, we will always be influenced by the herd mentality of the crowd. It is extremely difficult for any individual trader to remain completely free from the bias of the majority. Humans are social pack animals and we have  strong natural instincts that are not always conducive with successful trading. More about the fundamentals of Stock Market Technical Analysis.

Many traders employ the use of purely technical trading strategies, where others may only use their technical analysis in order to confirm their views based on their fundamentals analysis.