Understanding Technical Analysis for Stock Investors
In This Chapter
Defining technical analysis
Talking about trends
Checking out charts
Using technical indicators for investing decisions
In my early days as a stock investor, I rarely used technical analysis, but in my later years, I came to see it as a useful part of my overall investing approach. Yes, technical analysis is . . . well . . . technical, but it can help you time your decision about when you want to buy, sell, or hold a particular stock. In short, fundamental analysis (what the rest of this book discusses) tells you what to buy, and technical analysis tells you when to buy. I won’t make this chapter an exhaustive treatment of this topic (I bet you just said “Whew!”), but I do want to alert you to techniques and resources that will give you a leg up in today’s volatile and uncertain markets.