Technical Stock Analysis

Technical stock analysis is a form of stock research. It makes use of price data, time data, and/or volume data.

Technical analysis is purely mathematical in nature. It is based on the premise that all factors affecting a company�s stock will ultimately be reflected in the price. For instance, if a company is doing well it is likely to attract the attention of investors. Since investors are looking to make their money grow they will be interested in buying the stock. As more and more people buy the stock the price will rise.

The simplest way for a technical analyst to see the movement of the stock in our example above would be to look at a stock chart. Stock charts are very useful because they allow the analyst to �see� the stock prices in a whole different light. Charts give you a perspective that you simply cannot get by looking at stock prices in the newspaper.

Stock charts gives you the power to visualize the relationship between historical prices. At a glance it is easy to see how today�s stock price compares with the stock prices of 2 hours, 2 days, or 2 years ago.
Indicators are widely used tools in technical stock analysis. An indicator is a visual aid that is drawn on the same chart as the stock�s price. One of the most famous and widely used technical indicators is the �moving average�. This is simply an average that moves. For example, a simple 10 day moving average will be the average of the stocks closing price for the last 10 days.

Stock analysis is greatly simplified by the use of HYPERLINK “http://www.stock-analysis.org/stock-analysis-software”stock analysis software. Stock analysis software can be a simple as software that allows you to see charts of various stocks to full-blown stock analysis tools.

Technical stock analysis is in use by successful stock investor, traders, and institutions worldwide. It can be a most useful stock analysis tool whether you are performing BP stock analysis, GE stock analysis, or any other stock you may be interested in.