Chapter 10
Understanding Technical Analysis for Stock Investors
IN THIS CHAPTER
Defining technical analysis
Talking about trends
Checking out charts
Using the Relative Strength Index
In my early days as a stock investor, I rarely used technical analysis, but as time passed (and experience piled up), 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.
I’d like to mention some resources right out of the starting gate. Use the following resources to discover more information ...
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