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Basic Technical Analysis
Technical Analysis makes the assumption that history repeats itself. Any trading method
or system that works well on a broad sample of historical data, may have validity when
applied to future trading environments. One should keep in mind that the markets are
dynamic. The forces that motivate price movement are dynamic, and the participants
are dynamic. Therefore any system which has performed well on past historic data may
decline in value as the evolving dynamics of the markets change over time.
The assumption is made that trading results can be improved when trading skills are
improved. This requires practice! Surely any time spent learning to trade on past
historical data, will not be wasted when it comes to preparing to trade for the future.
It is important to note that this Technical Analysis Overview does not attempt to be a
comprehensive treatment of Charting or Technical Analysis methods. There are
numerous, well-written books on Chart Interpretation and Technical Analysis. This brief
and simplistic review of some basic charting concepts are provided for reference and to
stimulate further study.
More Basic Technical Analysis
Trends
Example of Trends
Support and Resistance
50% Retracements
Basic Formations
Reversal Patterns
Continuous Patterns
Technical Analysis