Technical Analysis

Using the past to give you the edge in the future

In simplest terms, Market Analyst is a Technical Analysis Package suitable for traders who are trading stocks, futures, currencies – in fact any security from any exchange in the world. Market Analyst was designed for those not born with a silver Microsoft mouse grafted in their right hand – as such it is one of the easiest software programs that you will ever use.

So What Exactly is Technical Analysis?

Technical Analysis (also known as Charting) is a method of analysing the historical data of a security. The analysis itself is usually some sort of mathematic formula that is calculated for every day in the history, this then creates a plot on the chart. The technical analyst interprets this information to make their trading decisions. At one level, technical analysis charting is all about probabilities. For example, if when analysing the historical data of a security, you find that 90% of the time a certain technical indicator changed direction just prior to a change in trend of that security, there is a high probability that a change in trend will follow, if you now see that the technical indicator has just turned again, you have a statistical basis for predicting the next change in trend.

A software program like Market Analyst is often referred to as a Technical Analysis Package. We prefer to call it a “Trader’s Toolbox”. The reason we call it a Toolbox is that Market Analyst contains many different Technical Analysis techniques that will allow you to apply the right technique to the right market just like using a hammer (instead of a saw) on a nail!

The accomplished technical analyst knows how to apply the techniques, and more importantly, knows how to interpret the analysis to make educated trading decisions. An important word of caution though – just as inexperience with tools in a toolbox can cause a lot of harm (remember the first time you used a hammer?), so using technical indicators without a thorough understanding of how to use them can cause you a lot of financial harm. This is why we recommend that our clients seek educators and/or education that can teach them how to trade with technical analysis.