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Options Made Easy: Your Guide to Profitable Trading, Third Edition by Guy Cohen

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Chapter 4. The Basics of Technical Analysis

What is technical analysis? Essentially, it is chart reading. More specifically, it is the science (or art) of recognizing chart patterns, interpreting them to make buying and selling timing decisions, and implementing a trading plan. Technical analysis can help you not only make your decisions but make them more precisely, make them more disciplined, and help you manage your money more effectively.

Technical analysis comes in two forms: price and volume patterns and indicators.

Many technical analysis supporters believe that everything you need to know about a security can be seen by looking at the charts.

Technical analysis comes in two forms:

Price patterns—These are simply visible patterns of ...

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