Ok. I decided to share some knowledge with potential speculators
here. 
Remember, TA is a good way to
forecast share prices based on the graph alone.
Contents
A. Definition of Technical Analysis
B. Art or science ?
C. Application in Markets
D/E Technical vs fundamental analysis
F. Guidelines in Using TA
G. Plotting Prices
Definition of Technical Analysis
John Murphy, author of "Technical Analysis of the Futures Markets"
says:
"The study of market action, primarily through the
use of charts for the purpose of forecasting future
price trends."
Martin Pring, author of Technical Analysis Explained" says:
"The art of identifying a new trend at a relatively
early stage and riding on that trend until the weight
of the evidence proves that the trend has been reversed."
My Lecturer Says:
"The art of interpreting market action (price, volume, etc)
and signals to determine the direction of the trend, the
extent of its move as well as its timing.
I say:
"TA is a tool used by speculators and greedy baskets to make a
quick buck from the stock market".
TA : ART OR SCIENCE ?
TA Started more as an art.
TA has been made more scientific due to rapid development the last
10 years, and the extensive application of computers in the
field.
However, judgment is always needed - though with lower dose of
subjectivity, given higher quality of tools today.
Hence, TA will remain an art, but will have greater scientific
underpinning.
APPLICATION IN MARKETS
Applicable in all traded markets - currency, interest rates,
commodities, stocks and indices.
Reason : TA attempts to capture market psychology, which underlies
all financial markets.
Applicable in equity markets in stock selection as well.
DISCLAIMER: THIS LECTURE NOTES ARE MEANT AS A
GUIDE. I, NOR THE AUTHOR OF THESE NOTES, WILL BE
RESPONSIBLE FOR ANYTHING HAPPENING TO YOU ARISING FROM THE USE OR
ABUSE OF THESE NOTES.
