[COLUMN] Technical analysis for stock trading

  • Stock traders use fundamental analysis and technical analysis to buy stocks.
  • Fundamental analysis involves looking at a company’s business metrics such as revenue, earnings and debt.
  • Technical analysis involves looking only at a stock’s recent price movements and identifying buy and sell signals in its chart.
  • Technical analysis identifies price trends and chart patterns.
  • Technical analysts believe past price changes carry over to future price movements. Traders depend on statistical trends in stock price and volume to predict future trends.
  • Fundamental analysis evaluates securities by measuring intrinsic value.
  • Technical analysts don’t usually care about value or what product or service a company sells; instead, they’re only interested in two things: stock price and volume.
  • Technical analysts look for patterns in a stock’s chart that signal where its share price is heading.
  • Modern technical analysis identifies a series of higher highs and higher lows as an uptrend while stocks making a series of lower highs and lower lows are considered to be in a downtrend.
  • The concept that a trader can look at a pattern of past price performance and predict that pattern will continue is the backbone of technical analysis.
  • Technical analysis focuses on examining price uptrends and downtrends in equities.
  • Technical analysts learn to identify historical market patterns to predict forthcoming market trends and make decisions based on those predictions.

Personally, I use fundamentals to look for value stocks, then use technicals for entry to buy and exit to sell.

* * *

Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation.

* * *

He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies.  He published a book on “How to Avoid or Survive IRS Audits” that’s available at Amazon. Readers may email tax questions to vicsy@live.com.

Victor Sy, CPA, MBA (retired)

Victor Santos Sy, MBA. CPA (Retired) Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation. * * * He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies. He published a book on “How to Avoid or Survive IRS Audits” that’s available at Amazon. Readers may email tax questions to vicsy@live.com.

No Comments Yet

Leave a Reply

Your email address will not be published.

The Filipino-American Community Newspaper. Your News. Your Community. Your Journal. Since 1991.

Copyright © 1991-2021 Asian Journal Media Group. All Rights Reserved.