Technical Analysis - Technical Analysis is the pra
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Technical Analysis - Technical Analysis is the practice of anticipating price changes of a financial instrument by analyzing prior price changes and looking for patterns and relationships in price history. Technical Events occur when a significant pattern has formed or a significant price activity has occurred in a financial instrument. Technical Events highlight price situations that may be worth considering in researching an investment activity. Technical Events can be used by investors to make more informed decisions about when to: Enter a new position (either a Long position or a Short position); Close an existing position; Wait for a better time to take action. Technical Analysis supports and complements additional Investment Research, such as Fundamental Analysis. Technical Analysis is the quantitative side of investment research. It is distinct from Fundamental Analysis, where investors use company and market information (such as earnings, balance sheet, interest rates etc.) to make investment decisions. In contrast, Technical Analysis is based on patterns and relationships in price history. When researching warrants, convertible preferred shares or convertible debentures, investors should consider technical analysis for the underlying stock. Technical analysis may be considered less indicative for non-convertible preferred shares and non-convertible debentures. Technical analysis should be used as one piece of additional information within greater research for an instruments.