Chapter 9 Price Indicators

The fundamentals include financial statements, earnings reports, dividend declarations and payments, and other financially-based information. Fundamental analysis involves looking backward to the historical facts in order to develop a sense of the trends and estimate where the future is heading. In comparison, technical analysis is based on today’s price and volume facts and is focused on how trading trends affect price.

In using technical factors, a few guidelines to keep in mind:

  1. Technical and fundamental analysis can be used together for cross-confirmation. The various indicators you track in a fundamental program often work well when augmented with specific technical indicators and ratios. Neither point of view ...

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