Close

Why Technical Analysis Matters

by Michael Kahn

Why Technical Analysis Matters Splash image

Technical analysis is a bit of a misnomer since it is really not that technical. A better name for the use of charts to make investment decisions might be risk/reward analysis or even market psychology.

Sure, there are some complex mathematical concepts involved with some of its more esoteric indicators. But at its core, technical analysis is simply a method of determining if a stock or the market as a whole is worth buying or selling. Once we identify this we are way ahead of the game with

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Register for FREE
to read this article and receive access to future AAII.com articles.

Log in
Already registered with AAII? Login to read the rest of this article.
  
Michael Kahn CMT, writes the twice-weekly Getting Technical column for Barron’s Online (www.barrons.com) and the daily Quick Takes Pro newsletter (www.quicktakespro.com). Kahn will be speaking at the AAII Investor Conference this fall; go to www.aaii.com/conference for more details.


Discussion

Edward from New York posted over 2 years ago:

I have been a Corning fan for years - your thoughts please


Vernon from Florida posted over 2 years ago:

If someone is seriously interested in Technical Analysis of stocks, I recommend the "Learning Article" on the DecisionPoint web site - excellent introduction.
http://www.decisionpoint.com/


Dana from Massachusetts posted over 2 years ago:

Another good reference book is William J. O'Neil's book "How to Make Money in Stocks"- although it will require a few readings. Good combinations of Fundamental and Technical analysis.


Sherwin from Idaho posted over 2 years ago:

Clear and to the point. I will try it.


Sherwin from Idaho posted over 2 years ago:

Clear and to the point. I will try it.


Don from Indiana posted over 2 years ago:

Very informative article. I plan to print a copy and keep it close to my computer as a reference tool.


Vaidy Bala from posted about 1 year ago:

Please permit me to suggest a title for Technical analysis, a refined, more scientific approach - Market Psychotechnoloy Analysis (MPA). This kind of blends the fact findings -science with that of human behaviors - emotions and feelings - drivers of our economic engines.
Thanks for reading


You need to log in as a registered AAII user before commenting.
Create an account

Log In