Expert: Christopher Stone - 3/17/2005

Question
Hello:

What type of technical analysis technique or method is available that can be used to forecast the price movement of a stock or currency?

I thank you for your reply.

Answer
Dear ?,

A main part of all technical analysis is forecasting the price movement of stocks, etc.  It is essential to be able to measure the risk versus the reward for a given trade, and technical analysis attempts to do that.  It sounds like you are interested in learning about technical analysis, so I will suggest some books as a starting point...

'Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications' by John J. Murphy

'Japanese Candlestick Charting' Second Edition, by Steve Nison

'Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices,' 2nd Edition by Thomas J. Dorsey

'The Master Swing Trader: Tools and Techniques to Profit from Outstanding Short-Term Trading Opportunities' by Alan S. Farley

Hope these books help you with your learning.

Best Regards,

Chris Stone