TECHNICAL ANALYSIS

Technical analysis is a method of evaluating markets by analysing statistics generated by trading activity, such as past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

A fundamental analyst studies all aspects of markets including demand and supply, perceived fair value of the asset class and outside influences such as interest rates, foreign exchange rates and macroeconomic data, particularly from the US. The FA then decides whether to issue a buy, sell or neutral recommendation. By contrast, a technical analyst disregards the intrinsic value of the asset and any buy or sell decisions ...

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