Are Conditions Favorable for Equity Assets?

We’re not going to assess whether investing in stocks is better than real estate, bonds, or thoroughbred racehorses. That’s more fundamental at this stage. Advanced technicians can do that purely through technical analysis by exploiting whatever relationships may exist between stocks, bonds, currencies, commodities, and other economic indices, but that is beyond the scope of this book. Let’s just say that we have made the decision to invest or trade stocks already and need to pick the best ones.

As stated earlier, the stock market is really a market for stocks, and only the strongest of bull or bear markets will move stock selection to the side. That said, why do you need to analyze the market as a ...

Get Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.