Technical analysis
The aim of the technical analysis is to identify stocks that are candidates for purchase or
sale, and the investor can employ technical analysis to define the time of the purchase or
sale. Such analysis is used not only for investigation of common shares, but also in the
trading of commodities, bonds, and futures contracts. This analysis can be traced back to
the seventeenth century, where it was applied in Japan to analyze the trend in the price of
rice. The father of modern technical analysis is Charles Dow, a founder of the Wall Street
Journal and its first editor in the period of 1889 -December 1902.
Technical analysis ignores company fundamental information, focusing instead on the
study of internal stock market information on price and trading volume of individual
stocks, groups of stocks, and the overall market, resulting from shifting supply and
demand. Technical analysts believe that stock markets have a dynamic of their own,
independent of outside economic forces.