Technical Analysis

Question 1

What does technical analysis use

Answer 1

Historical data like price and volume to incorporate behavioural economics and stuffs

Question 2

What are the 2 general approaches to technical analysis

Answer 2

The top down

The bottom up

Question 3

Is Top down approach usually used for long term or short term traders

Answer 3

Short term

Question 4

Is bottom up approach usually used for long term or short term traders

Answer 4

Long term

Question 5

How does top down tend to work

can see more

Answer 5

Macroeconomic and Short term and looks at economies, then sectors/industries and then companies

Question 6

How does bottom up tend to work (can see more)

Answer 6

Focuses on individual stocks instead of macroeconomics, use technical analysis to determine an entry point

Question 7

Using the 50day and 200 day moving averages how might you see a buy signal

Answer 7

when the 50 day moves above the 200 day might show a buy signal (requires high liquidity and/or volatility)

Question 8

What day moving averages would be used for more short term tings

Answer 8

50 and 15 days