Technical Analysis - Explained - Credit Suisse
Patterns(Elliott waves)Trend(Moving averages)Momentum(Rates-of-change)Techni cal Analysis - ExplainedPrivate BankingZurich/SwitzerlandGlobal Technical Research and Behavioral FinanceCautionHopeGreedOptimismEuphoriaC onvictionConfidenceReliefDespondencyPess imismFearPanicDenial- 2 - Technical Analysis - ExplainedGlobal Technical Research60006500700075008000850090009500 ContentsWhat is Technical Analysis ? . . . . . . . . . . . . . . . . . . . . . . . . .3Technical Analysis pre-empts fundamental data . . . . . . .4Mood governs ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Optimism, pessimism, greed and fear . . . . . . . . . . . . . . .6Chart types and chart construction . . . . . . . . . . . . . . . . . .7Support and resistance . . . . . . . . . . . . . . . . . . . . . . . . . . .8Trendlines.
price should fall. However, long-term analyses of price changes in financial markets around the world show that such a correlation is present only in the short-term horizon and only to a limited extent. It is non-existent on a medium- and long-term basis. In fact, the contrary is true.
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