Chart Analysis

Chart analysis is the same as Technical Analysis.

SIMPLE DEFINITION: Technical Analysis is the use of technical indicator to predict which direction the stock price will move in the future.  Technical indicators use past stock prices to calculate their value.

Technical analysis evolved from analyzing 100s of years of stock data. The theories for technical analysis began in Joseph de la Vega’s accounts of the Dutch markets in the 17th century.  In the 1920s and 1930s Richard W. Schabacker wrote books continuing the work of Charles Dow and William Peter Hamilton from their books Stock Market Theory and Practice and Technical Market Analysis. In 1948 Robert D. Edwards and John Magee published Technical Analysis of Stock Trends. This book is considered to be the break through works of the discipline.

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