Chart-Based

Technical analysis is a chart-based way of using price action of a security, commodity, asset class or even an entire index to determine suitable entry points into a particular market.

The crux of technical analysis (TA) is that everything that can and does affect the price of a security is already built in to the market price. Whether this is because the some market participants have yet to act on information that is already available to the others is beside the point. Advocates of this type of analysis tend to ignore the fundamentals which can include issues such as disappointing earnings, macro-economic conditions, geo-politics and even scandal. Their contention is that it is the market’s reaction to the news rather than the news itself that is important.

The patterns emerging from analyzing these charts can be used to identify the best entry points into the market for the security or index for investors seeking to ride the trend in the price action of the underlying security whether that be upwards or, in the case of short-selling, downwards.

Several of our analysts are accredited technical professionals with many years’ experience within the financial markets.