Technical Analysis
Everyday, all over the world things are moving. People have needs and wants and often fulfill them by exchanging goods. This then chances the price medium to which ever demand is in greater, to buy or to sell. This phenomenon is known as the supply and demand theory. The equity markets are in fact a large auction with bidders and buyers constantly exchanging financial equities between buyers and sellers. This transaction creates a set price exists only till the next exchange between buyers and seller occur and the new price is determined. The goal and reason for efficiency in this scenario of the markets is to produce the best possible price at the time. The NYSE, NASDAQ, CBOT, MERX and other exchanges in foreign countries make up are called "the markets". Inside the markets are individuals purchasing for their own purpose and or for major institutions, such as a mutual fund company or a commodity trader purchasing 10 tons of corn for Kellogg's Cereal. Though you could be buying stock in a company, often times the stock and the company move separately. "Among the hardest lessons for investors to understand is that one's perception of a company and how the market values its stock are often two very different things" says Kevin Marder, who is chief market strategist at Ladenburg Thalmann Asset Management in New York.
With that aside one of the core reasons for this idea and market to exist is along with best price is to make a profit. One of the key foundations to technical analysis is that since the market is controlled by humans, human behavior is ever present in the overall action of the market in whole and in individual stock or commodity price flucations. Therefore, price moves in tr ...