Skip to Main Content
A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits
book

A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

by Michael C. Thomsett
July 2015
Intermediate to advanced content levelIntermediate to advanced
352 pages
9h 40m
English
Pearson
Content preview from A Technical Approach To Trend Analysis: Practical Trade Timing for Enhanced Profits

Comparing Fundamental Trends to Technical Trends

The ultimate test of fundamental trend analysis is how it becomes reflected on stock charts. In fact, a consistent “cause and effect” is found between the two sides. Companies with strong fundamentals tend to also demonstrate bullish stock price trends, and those with weak fundamentals tend to report bearish trends.

Key Point

Fundamental trends ultimately will play out in price trends, but this does not always occur immediately.

This becomes true over time, but the actual cause and effect are distorted by marketwide trends. For example, when the market (as measured by index movement such as the DJIA or S&P 500) is moving in a particular direction, individual stocks tend to exhibit a similar ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Kirkpatrick’s Investment and Trading Strategies: Tools and Techniques for Profitable Trend Following

Kirkpatrick’s Investment and Trading Strategies: Tools and Techniques for Profitable Trend Following

CMT Charles D. Kirkpatrick II

Publisher Resources

ISBN: 9780134190662Purchase book