What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community. Get Started Now!

Technical analysis

Technical analysis is the practice of studying past prices of a stock and changes in its trading volume in an attempt to discover whether it will go up or down in the near future.

Expanded Definition

Technical analysis can range from the simple (moving averages) to the arcane (stochastic oscillators and Bollinger bands). The efficacy of these techniques is disputed, but many traders claim to use them to achieve much higher annualized returns.

Technical analysis and the Motley Fool

Technical analysis is not embraced by staff writers of the Motley Fool, especially not when used to the exclusion of fundamental analysis and valuation. However, many people swear by it, and many who examine fundamentals and valuation augment with technical analysis, especially to aid in timing. Practitioners of technical analysis seldom agree that "you can't time the market."

David Gardner Explains

Related Fool Articles

Related Terms

Recent Mentions on Fool.com