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| Fund Technical Analysis Frequently Asked Questions |
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What is technical analysis?
According to Wikipedia, technical analysis, also known as charting, is the study of the trading history (the price and volume over time) of any type of traded security (stocks, commodities, etc.) to attempt to predict future prices.
Is technical analysis really working?
According to researcher Cheol-Ho Park and Scott H. Irwin, technical trading rules generally have not been profitable in US futures markets after correcting for data snooping biases. However investment professionals in US, Europe and Asia are increasingly use algorithmic trading, which is trading using computer programs based on technical analysis. For us, technical analysis is just another tool in investment studies. It should be used together with fundamental analysis and political analysis. It provides different view on a potential investment opportunity.
I am a long term fund investor, can I use technical analysis?
Technical analysis is about studying of prices. Parameter(s) of an indicator should be adjusted to reflect timeframe of a potential investment. For example, if you are a long term fund investor, you can use 200-day moving average instead of 50-day moving average.
Technical analysis cannot be applied to a fund because the composition of a fund may be changed?
A fund is similar to an index, which represents a group of securities. The composition of a fund may be changed just like composition of an index. If technical analysis is applied to an index, why it cannot be applied to a fund? Technical analysis is about studying of prices. As long as a security has price, you can apply technical analysis on it.
What should I learn about fund technical analysis?
Since volume is not directly applicable to funds, learn indicators which do not use volume. The following is basic technical analysis
Where can I learn more about technical analysis?
You may visit websites listed in the technical analysis section of resources page.
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