Prices charts illustrate public opinion that is based on the principle of psychology. The right market approach for successful trading requires to figure market psychology orientation. What is the appropriate approach in order to recognize dominate market psychology orientation? How we can align all factors which are taking the role in market orientation? How we can benefit from the impact of financial news, rumors, economic and political news? How we can extract a rational conclusion out of them? Isn’t this market too complex nowadays? Is there any way to achieve successful market activity?
In order to answer these questions maybe it is better to reinitiate our perspective from the start. Most of the people believe in the necessity of analyzing all data in order to have a reliable analysis, but is it possible to identify all the relevant aspects and data? Are we capable of distinguish between right and wrong news? Could we distinguish the impact of economic and political aspects? It seems too complicated and rather impossible to do so.
But technical analysis has a different perspective. Technical analyzers investigate prices which are the result of all involved aspects, instead of identifying the contributing factors. In other words, technical analyzers believe that price illustrates all contributing factors. Hence, instead of analyzing data and factors it is better to analyze the chart of prices in which you could see the result of all those factors.
This perspective leads us to a more comfortable market vision, because we are just analyzing the outcome of all aspects without necessity of reasons identification.
A technical analyzer does not need to be in the venue physically, or look for hot financial news, hence with this perspective market analysis is more feasible.
One of the most significant aspects that a technical analyzer could reach with the help of different technics, is the identification of support and resistance stock level. The support levels are faced with increased demand share and potential growth while the opposite happens in resistance level.
Awareness of these borders and the price variances, are very useful information for investors and traders. With this information, we could identify the level of risk to return, hence the accurate time for purchases and sells.
Technical web software, associated with the support of skilled and experienced team of analyst provides you with the information necessary to take advantage of higher rates of return in stock market.