A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Technical Analysis is the forecasting of markets through the study and analysis of data generated exclusively from the buying and selling of financial instruments. It is part science and part formalization of trader intuition and experience. Any market for which there is a regular, transparent transaction history is a candidate for technical analysis. Planetary cycles, opinion polls, fundamental, monetary and economic data as well as any data not specifically generated from the buying and selling process, are not a part of orthodox technical analysis.
Yet there remains fierce debate over the true definition of technical analysis. For example, the Market Technicians Association, the main organizing body for technical analysis in the United States, includes the "behavior and psychology of market participants" in its definition of technical analysis, a definition which permits the inclusion of a wide range of activities not normally associated with markets or trading. Some well known technicians such as John Bollinger and others, believe that subjects normally associated with fundamental analysis, such as the study of stock dividends, qualify as technical analysis. Still others believe that "financial astrology" should be included under the definition of technical analysis. The Market Technicians Association has never directly acknowledged or rendered an official opinion concerning these important questions.