Some traders’ terms

Analysis

Fundamental analysis The study of economic information to forecast prices and to gauge if an asset is overvalued or undervalued. It is an analysis of current economic conditions to calculate the fair value and forecast the future price of an asset.

Technical analysis The study of price movements using past prices, volume and open interest to identify trading opportunities. It is an analysis of historical price data to identify price trends. Technical analysis includes a variety of techniques such as chart analysis, pattern recognition, seasonality and cycle analysis, and algorithm technical trading systems.

Chart analysis

Chart A graphical record of prices and volume, taken at regular intervals.

Close/closing price ...

Get Financial Times Guide to Technical Analysis now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.