๐๐๐๐ก๐ง๐ข๐๐๐ฅ ๐๐ง๐๐ฅ๐ฒ๐ฌ๐ข๐ฌ, ๐ฐ๐ก๐๐ญ ๐ข๐ฌ ๐ข๐ญ?
๐Technical Analysis is a research technique to identify trading opportunities in the market based on market participantsโ actions. The actions of market participants can be visualized, utilizing a stock chart. Over time, patterns are formed within these charts, and each pattern conveys a certain message. The job of a technical analyst is to identify these patterns and develop a point of view.
๐Like any research technique, technical analysis stands on a bunch of assumptions. As a technical analysis practitioner, you need to trade the markets, keeping these assumptions in perspective. Of course, we will understand these assumptions in detail as we proceed along.
๐Also, at this point, it makes sense to throw some light on a matter concerning FA and TA. Often people get into an argument contending a particular research technique is a better approach to the market. However, in reality, there is no such thing as the best research approach. Every research method has its own merits and demerits. It would be futile to compare TA and FA to figure out which is a better approach.
๐Both techniques are different and not comparable. In fact, a prudent trader would spend time educating himself on both the techniques to identify great trading or investing opportunities.