International Encyclopedia of Technical Analysis covers concepts, terminology, and explanation of technical analysis tools and their practical applications in investment analysis. Technical analysis involves judgment based on experience. The latest developments in technical analysis are included.
Technical analysis applies judgment based on experience to help investors predict prices of stocks, bonds, indexes, commodities, futures contracts, and other financial instruments. The focus is on price and volume action. We are concerned as to what has happened and why.
Technical analysis is based on the presumption that history repeats itself. With conditions and factors similar to the past, market participants will basically react in a similar way as previously.
The activities of market participants are displayed on charts to identify patterns that repeat over time. Buy and sell signals show up as they have done before. By determining the minimum degree of a trend, one can time just when to buy or sell.
International Encyclopedia of Technical Analysis shows the investor what to buy or sell and when. It looks at chart analysis reinforced by technical indicators. The Commodity Research Bureau (CRB) Futures Price Index measures the trend of commodity prices. The book has a detailed technical analysis of commodities.
The book therefore, as an encyclopedia should, covers the entire spectrum of technical analysis, with enough detail, we hope, to inform the investor new to technical analysis, and refresh the understanding of dedicated chartists.