Technical analyst – these words may evoke many different intellectual images.
The technical analyst says that “the market is always correct”.
Technical analysis is the study of prices in freely traded markets with the intent of making profitable trading or investment decisions.
There are two ways of technical analysis – “predictive and reactive”.
1.Predictive- Individuals make money by selling their predictions to others. Market letter writers in print or on the Web and the technical market gurus who frequent the financial news fall into this category.
2.Reactive- a trader use a moving average crossover to signal when a long position should be taken. In other words, the trader is watching the market and reacting when a certain technical condition is met.