Technical analysis when used properly is a powerful tool that improves the timing of trade entry and exit. Employing the many skills involved – charting, interpretation, and confirmation – enables you to improve your overall trading skills.

Technical analysis is a process of study focusing on price and related signals. These include volume, momentum, and moving averages. A technician is most likely to employ stock charts in the search for price patterns. The intention of this analysis is to identify price reversal points, so that timing of position entry and exit will be improved.

This presentation introduces a range of tools associated with technical analysis in four primary areas:

• Fundamental vs. technical analysis: Differences and similarities; using both together in a coordinated program.
• Does technical analysis work? Examples and a case study showing the value of technical analysis.
• Criticism of technical analysis: Short-term price movement is chaotic, so how does it provide meaning? The essential features of price patterns, oscillators and moving averages.
• Assumption behind technical analysis. Even with chaotic price movement, all economic matters (including supply and demand in pricing of assets) has predictable and specific order. It does not always manifest, but it does so often enough to provide traders with guidance.