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 our early days as stock investors, we rarely used technical analysis, but in our later years, we came to see it as a useful part of our 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. We won’t make this chapter an exhaustive treatment of this topic (we bet you just said, “Whew!”), but we do want to alert you to techniques and resources that will give you a leg up in today’s volatile and uncertain markets, an environment where being nimble and quick with stock trades may pay off.