Basic Technical Analysis Tools

[jake]

Hi Guys,

I have started this thread because i want to know what you think is the basic analysis tool that every option trader should know...

[jekiee]

The basic definition of technical analysis.

The term "technical analysis" is a complicated sounding name for a very basic approach to investing. Simply put, technical analysis is the study of prices, with charts being the primary tool.

[okareen]

Play the Trend

At the core, there are really only two trends that comprise technical analysis: continuations or reversals. So, technical analysis helps us identify whether an underlying security's movement (whether it's a stock, option, bond, ETF or commodity) will remain the same or change.

Technical analysis essentially holds that the history of a price action helps to define and shape future events. So, for example, if traders supported a stock on light-volume pullbacks to the 50-day moving average, they are likely to do so again.

[mitchjay]

Practice trading stocks and options with real-time markets with virtual money.





http://www.ivolatility.com/