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Technical Analysis For Dummies, 4th Edition
book

Technical Analysis For Dummies, 4th Edition

by Barbara Rockefeller
October 2019
Beginner content levelBeginner
384 pages
10h 46m
English
For Dummies
Content preview from Technical Analysis For Dummies, 4th Edition

Chapter 1

Introducing Technical Analysis

IN THIS CHAPTER

Bullet Knowing what certain words mean

Bullet Accepting the idea that the trend is your friend

Bullet Figuring out what can go wrong

Technical analysis is the study of price behavior in financial markets in order to forecast the next price movement and to trade on that forecast with cold, hard cash. Focusing on price behavior gives you a window into the mind of the market — what the majority of key players are thinking — and helps you make better trading decisions. Technical analysis seeks to identify and measure market sentiment, described as optimistic (bullish), pessimistic (bearish), or uncertain about future prices (sideways range-trading).

To become a technical analyst, you need to figure out how to draw lines on your security price chart and work up the courage to place the buy and sell order with your broker. Each type of line is named an indicator, and I cover every major type of indicator in this book. You need to figure out whether the line/indicator embodies a bullish or bearish outlook (price rising or falling). Many lines/indicators contain a handy built-in buy-and-sell signal, but following those probably won’t match your risk ...

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Publisher Resources

ISBN: 9781119596554Purchase book