Technical Analysis (Basics) | Investment Knowledge

Learn more about Technical Analysis in this Investment Tutorial. I hope you can learn something new and if you like what you see feel free to comment, rate and subscribe to this channel. Thanks for watching. This video has been taken from http://www.youtube.com/user/MoneyWeekVideos and was approved for reuse on other channels. In finance, technical analysis is a security analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis which states that stock market prices are essentially unpredictable. http://en.wikipedia.org/wiki/Technical_analysis I created this video with the YouTube Video Editor (http://www.youtube.com/editor)

Comments

1. Market efficiency: news and events injecting its emotional skew, institution a.k.a. LTCM ( a bit of history for you kids) injecting market bias, "herd" individual "correction" investors "charting" their candlesticks, etc. looking for "in - out" timing the market ... really the term I use is simply that market should be spelled or called MIRROR of what has transpired Overnite, Overseas and Over the Counter ... WHY the trades transpired are often beyond technical analysis therefore EVERYONE would be Jumping Over the "Candlestick" rich. When governments, uber wealthy investors, institutions are all whacked out (2005 to 2008) well then you might hear ... " We didn't see that one coming" Really? How the previous multiple disasters? Market Efficient? Hardly.The powerful Wizard of EconoLand is replete with formulae and axioms, theorems and jargon spouting Lemma's at look at the final Lack Of Precision ... Cmon Dude Think for yourself How many hard working long life investors end up Rich? Lotto players all. Quote: 1929 Crash, 80's Latin Banking Fiasco, Crash of 87, 94 Bond Meltdown, 97 Asian Crisis, 98 Russian LCTM Default Debacle, 2000 Nasdaq Crash, 2001 Enron, 2002 WorldCom, and still to recover from the longest lasting financial fiasco, the 3007 Credit Nuke Explosion (40 year war?). Market Efficiency? I do see a trend here ... a sucking hole in equilibrium (Arrow, Debreu) after which Friedman states " Theories should not be judged on the Realism of their assumptions, wildly unrealistic assumptions are not reasons to dump an economic Model, much less call it useless"David Durand of MIT called a spade a spade with the arrival of the BSM quant types, those computer formulae wielding Wizards! at least the quants of old kept one foot in the ground ... The instructors who offer criticism or caution or call BS, get eaten and tossed by the keepers of wealth, Carnegie and Ford Foundations (48 million til 1965)supported recipients of cash flows. E. Derman, and Arthur Stone Dewing warned not to worship the unknown economic engine promising Equilibrium, Fair Market Price and Risk Assessments? Where you guys been? IMF the global watchdog asleep yet again? Failed Reduced Volatility will strike again in 2016-2018 ... no thanks to unreal world financial quants produced by unreal world business schools and instructor lemmings.
2. One problem in the three fundamentals in technical analysis or "Charting"...you can't time the markets if all relevant information has been taken into account. The market is efficient.  Nobel Laureates French and Fama argue that you should stay the course and allow market efficiency to level out any self afflicted variations or risks.  Anything we do can skew us from inherent market efficiency.