ch16 Technical Analysis外文电子书籍.pptVIP

Technical Analysis Chapter 16 Charles P. Jones, Investments: Analysis and Management, Ninth Edition, John Wiley Sons Prepared by G.D. Koppenhaver, Iowa State University What Is Technical Analysis? Technical analysis is the use of market-generated data for the analysis of stock prices It attempts to identify trend changes at an early stage Technical analysis is sometimes called internal or market analysis May produce insight into the psychological dimensions of the market Oldest approach to stock selection The Basis of Technical Analysis The belief is that trends can be identified by studying past price movements and trading volume Technicians use technical indicators Technical Approach Prices move in trends determined by changing attitudes of investors Identify change in trend at an early stage and maintain investment posture until evidence indicates otherwise Market itself is own best source of data about trends Data includes prices, volume, and technical indicators Technical Approach Technicians believe it is extremely difficult to estimate intrinsic value and to obtain and analyze information consistently Market data indicates forces of demand and supply Record of investor mood that can be detected and is likely to continue Tools For Technical Analysis Use of graphs, charts, and technical trading rules and indicators Price and volume primary tools of the pure technical analyst Chart is most important mechanism for displaying information Volume data used to gauge market condition and to assess its trend Stock Price and Volume Techniques The Dow Theory Charts of Price Patterns Moving Averages Relative Strength The Dow Theory The oldest and best known theory of technical analysis The Dow theory is intended to forecast the start of a primary movement--needs a confirmation signal There are numerous versions of the Dow theory, hence multiple interpretations Charles Henry Dow (1851 –1902), an American journalist who co-founded Dow Jones Company with Edward Jo