8 Technical Analysis Tools That Give Any Trader an Edge
You may have seen a TV ad where "traders" describe their strategies, and one says, "I trade on fundamentals." That sounds very reassuring -- except that, on any given day, "fundamentals" are a mixed bag:
You might have a good U.S. employment report...but bad news from Europe
A positive Fed statement...but a negative housing number
Strong earnings...but slowing consumer spending
A Free Lesson on How to Combine Technical Indicators with Elliott Wave Analysis
So all of the talking heads and pundits are coming out with their own reasons for gold taking a big fall. And if we look at history we would think that all of the credit woes of Europe have magically disappeared. Or China has found the cure for it's inflation problems. But no, none of the above has happened, but gold has still plummeted $100.
Some people are looking at the broad markets right now and seeing possible resistance to higher prices, based on the fact that we’re right back where we were in April/May of this year. I see news stories talking about how the S&P is at a two year high.
Buy low, sell high – right? Doesn’t this mean we’re at the “high”?
In the stock market today, traders use a number of different techniques to help them identify which company will be a good stock pick. Technical analysis is widely used to understand or predict how a particular stock may move. Technical indicators are used to help determine whether an asset is trending, and in which direction it is doing so.