2. What Is Technical Analysis?
What a terrible name has been bestowed upon this method of market analysis—technical. It is about as technical as singing. Designing electronic circuit boards is technical. Developing a new bio-medical implant device is technical. Market analysis? That is not technical.
True, there are technical terms and complicated research. Mathematical modeling can also play a role, but strip away all the advanced-level components, and technical analysis is just a tool investors and traders use when deciding to buy or sell a stock, bond, currency, or commodity.
One analogy that can be used is that of the carpenter. Market technicians carry with them a technical toolbox filled with the studies, patterns, and classifications. ...