Components
Technical analysis is the art of identifying market turning points at a relatively early stage. The goal for all but the most aggressive of traders is to ride the bulk of the trend as far as possible without attempting to pick the exact tops and bottoms.
The Chart
The basic component of technical analysis is the chart. Depending on how detailed the analysis is going to be, the chart captures all relevant data and displays it in a logical format. Of all the information that can emerge from it, the most important is how the market got to where it is at any given point in time. How it moved from price A to price B over time reveals a great deal about supply and demand, investor sentiment, and pent-up price potential.
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The basic component ... |
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