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What is mySmartTrader all about?

"The universe cannot be read until we have learned the language and become familiar with the characters in which it is written."
~ Galileo Galilei

Technical Analysis

Investing isn't easy. Investing profitably is even harder. As a result, investors are always looking for that 'angle', that 'edge' that will help them realize more consistent profits. In the past 2 decades, many on Wall Street have come to believe that technical analysis of stock charts is one of those tools. I do believe that technical analysis can be a helpful tool. And if you are looking for a definitive source of technical analysis, then look no further.

If you are a technical analysis convert, this program is a useful guide to your trading. Today, it remains one of the few programs out there of this nature.

Market Action Discounts Everything

A major criticism of technical analysis is that it only considers price movement, ignoring the fundamental factors of the company. However, technical analysis assumes that, at any given time, a stock's price reflects everything that has or could affect the company - including fundamental factors. Technical analysts believe that the company's fundamentals, along with broader economic factors and market psychology, are all priced into the stock, removing the need to actually consider these factors separately. This only leaves the analysis of price movement, which technical theory views as a product of the supply and demand for a particular stock in the market.

Prices Move in Trends

In technical analysis, price movements are believed to follow trends. This means that after a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. Most technical trading strategies are based on this assumption.

History Repeats Itself

Another important idea in technical analysis is that history tends to repeat itself, mainly in terms of price movement. The repetitive nature of price movements is attributed to market psychology; in other words, market participants tend to provide a consistent reaction to similar market stimuli over time. Technical analysis uses chart patterns to analyze market movements and understand trends. Although many of these charts have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves.