The earlier parts of this section have assumed that you are approaching the task of picking stocks and other investments using fundamental information about the company. However, technical analysis (using share price charts to identify potentially profitable investment opportunities) has many adherents.
Many technical analysts use sophisticated computer programs to identify profitable share price patterns. There are, however, several useful sources of information that can help, without going to the expense of buying software.
Before looking at chart web sites, however, it is important that you educate yourself on how and why technical analysis works as it does, what patterns to look for and what to avoid.
There is a copious amount of literature on the subject, and the recommended reading list at the end of this course suggests useful books. If you are unfamiliar with the subject, you should read at least one of them.
Most chart sites work by allowing you to input a ticker symbol and derive a chart. The better sites also provide a range of commonly used technical indicators that provide more information and help interpret the movements in the share price. These include:
Some sites also have the ability to construct a chart using several alternative chart-drawing techniques.
Some useful sites to visit to get an idea of what might be on offer include Barchart (www.barchart.com), BigCharts (www.bigcharts.com), Clearstation (www.clearstation.com) and Outer Curve Finance (www.outercurvefinance.com).
Information on US orientated chart software can be found at Metastock (www.echarts.com), Tradestation (www.omegaresearch.com) and Omnitrader (www.nirv.com).
Recommend ReadingBook offers!
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Qfinance
Conrad Gardner (Editor) |
| Our price: £125.00
Normally: £150.00 |
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101 Extraordinary Investments: Curious, Unusual and Bizarre Ways to Make Money
Toby Walne |
| Our price: £7.40
Normally: £12.99 |
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Technical Analysis of the Financial Markets
John Murphy |
| Our price: £39.89
Normally: £56.99 |
