Transcription of Technical Analysis - Explained - Credit Suisse
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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 ? ..3 Technical Analysis pre-empts fundamental data ..4 Mood governs ratio ..5 Optimism, pessimism, greed and fear ..6 Chart types and chart construction ..7 Support and resistance ..8 Trendlines ..9 Investment horizons ..10 What trend? ..11 Moving averages ..12 The simple moving average ..13 long -, medium- and short-term averages ..14 Moving average crossover ..15 Momentum ..16 Momentum, indicator signals ..17 long -, medium- and short-term indicators.
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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