Technical analysis is the study of human psychology, which is represented in the form of price action on a chart. You analyze the stock itself.
Technical analysts look for repeatable patterns and indications that can predict future price movements. Since human psychology and emotions will always be a factor in stock markets, the study of historical price movements of a stock relays the fear and greed associated with that stock.
Let's look at two technical tools that I use often – which is to say, every day the markets are open.
The first shows the movement of price in a group of stocks relative to each other. The second is a broadly watched tool that shows us both the long-term trend of a stock and important areas of support and resistance.
These two tools working together are going to reveal exactly when we should be moving on these stars of the $20 billion North American cannabis sector…
About the Author
D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.