The role of technical analysis in stock market investing

[Johnson2468]

Technical analysis involves analyzing historical price and volume data to make predictions about future price movements. By studying charts and using various indicators, investors can identify support and resistance levels, trend reversals, and potential entry and exit points. Technical analysis helps investors make informed decisions based on market sentiment and supply-demand dynamics. While it has its limitations, technical analysis can complement fundamental analysis and aid in timing trades, managing risk, and maximizing returns.

 

[Bisolami]

Technical analysis involves analyzing historical price and volume data to make predictions about future price movements. By studying charts and using various indicators, investors can identify support and resistance levels, trend reversals, and potential entry and exit points. Technical analysis helps investors make informed decisions based on market sentiment and supply-demand dynamics. While it has its limitations, technical analysis can complement fundamental analysis and aid in timing trades, managing risk, and maximizing returns.

Studying charts may be very difficult so this aspects should be for experts. They should just employ people for things like this because it is not something that the business owner can so alone

 

[Rubz]

Technical analysis is very important in stock market investing because it helps one to make use of the past market data to predict the future price guiding one to make the right decision in stock market investing.

 

[Golden9]

I always use technical analysis instead of fundamentals because I don't have time to follow the market all the time. Also, while technical analysis can be used on any timeframe, it's more difficult to use fundamental analysis the same way.

 

[Suba]

Technical analysis is used more by traders in trading stocks so that it aims as a short-term analysis using charts of price and volume movements. Technical analysis will also make it easier for traders to observe risk, because price volatility will be more clearly seen on charts than numbers.

 

[eldavis]

from my little experience though the stock market still makes use of this, but it is very much common with crypto and forex traders. You need to have a good understanding of it before you can actually earn from it.