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Technical and Sentiment Analysis: Tools and Tactics
Just as with fundamental analysis, there are tools that technical analysts use to determine when to buy or sell a stock. These tools are called indicators. All the indicators explained in this chapter can be found on a stock chart (since technicians study stock prices using charts).
By the time you finish this chapter, you should have a better understanding of how to use indicators to provide insights into market (or stock) direction. Just as a carpenter needs a hammer to build a house and a golfer needs the best clubs, traders and investors need indicators.
Using indicators to help with trade decisions keeps emotions out of the trade. When used properly, indicators act as an early warning ...
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