O'Reilly logo

Cotter On Investing: Taking the bull out of the markets: practical advice and tips from an experienced investor by John Cotter

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 8: Charting the Way

Fundamentalists v. technicians

Stock market analysts tend to fall into two camps. By far the larger group are known as fundamentalists; they focus on the business fundamentals of a company and the wider economy. They will study balance sheets, news flows and brokers’ opinions and will use tools such as the PE, dividend yield and PEG to analyse companies. The second group are known as technical analysts, or chartists. They attempt to forecast the future direction of share prices through the study of past price behaviour. To achieve this, the sole object of their attention is the chart.

In this chapter I will look into the basics of technical analysis and try to answer some simple questions. Although, personally, ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required