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Technical Analysis

An Introduction to Technical Analysis

Technical analysis may help you determine when to buy or sell an investment.

While fundamental analysis helps you decide in which companies you may want to invest — based on a company’s management, products and services, financial records, and other information — it won’t help you figure out when to buy, sell, or hold.

Indicators

Technical indicators can help you make sense out of sometimes confusing price information.

In technical analysis, indicators are used to predict price movements and show market trends.

Oscillators

An oscillator is a type of technical indicator whose value fluctuates between set levels.

In technical analysis, an oscillator is a technical indicator. There are two types: centered and banded.

Price Charts

Looking at a security’s past and current price movements can give you clues about how prices may move in the future.

Technical analysts study a security’s past and present price movements to make predictions about what will happen in the future.

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