Technical analysis is a popular method for price forecasting. Below is a general description of what technical is together with some popular patterns used in technical analysis.
What is technical analysis
Technical analysis is a time-proven method of forecasting the prices of stocks, futures contracts, indexes, or any kind of financial instrument. You can apply it to any kind of financial instrument. You can apply it to any investment or trading vehicle because you focus exclusively on price action, not on the underlying reasons for the movement of prices up, down, or sideways. The basic premise is that history repeats itself. Specifically, given a set of conditions, the participants in a market are going to react, in the aggregate, pretty much the same way all the time. The collective activities of participants show up on the technician's charts as patterns ¡X patterns that repeats themselves. If you record the price movements of an instrument or market, eventually these patterns emerge, along with buy and sell signals. In many cases, you can even calculate the minimum extent of a trend, thereby knowing when to get into the market and when to get out.
Despite the effectiveness of technical analysis, its techniques are simple and easy to learn. The real test of a successful technical analyst, however, is the seasoned individual judgment that comes with experience. This course will acquaint you with the basics of technical analysis, thereby enabling you to begin charting and start gaining that experience right away. Without knowing the basics, the experience gained from transactions can be costly.
You can use i-trading to view live charts. You may choose from a simple line chart to the popular candle stick charts. Time frames range from 5 mins to monthly charts. You may also plot moving averages if you wish.
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