technical analysis

Benefits and uses of the technical analysis

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There is a constant debate between the two major schools of thought for financial analysis to which one is better, the technical or fundamental analysis? They both have a different approach of analysis and forecasting the market. One of them has a deep focus on the intrinsic value which is considered as the main trigger of the change on the price of the stock; Some of the main characteristics that the fundamental analysis has in consideration are the earning and expenses, economic conditions and the overall value of a company. On the other hand, technical analysis differs as is based solely on the price market in order to identify trends with the use of charts and financial indicators.

Both methods are without a doubt the most valuable tools for any investor, and when used together gives an added value to the decision making process, My T-Advisor keeps available the most updated historical data, charts and indicators, to help investors in their technical analysis. When using My T-Advisor to follow-up any financial product, the tool gives at a glance an interactive chart showing price trend, with the option to adjust the type of graph, choose a financial indicator such as Moving Averages and Bollinger Bands; and adjusted to any time period. graph

My T-Advisor also has a Charting area for investors seeking a more advanced analysis, To follow up on our example, we have chosen a pricing line since 2013 with a simple moving averages indicator for a 20, 70 and 200 day period, in order to have an idea of how the price of the stock is moving in the market.

charting area

What are the main advantages of the technical analysis?
  • Technical analysis has a higher value for the particular investor that does not have the knowledge or resources to make a deep economic analysis, allowing them to take better investment decisions.
  • Charts are a quick option to have an idea on the price trend.
  • By using charts, is easier to discover patterns that will help the investor define the best entry or exit point, although there are several other factors that also have a strong impact this type of analysis helps keep objectivity and reduce bias.
  • Last but not least, technical analysis is a technique applicable to any type of tradable product such as Bonds, Stocks, currencies or commodities
The value of these momentum-based indicators along with the advanced digital tools such as My T-Advisor, gives a valuable advantage so investors can forecast and reduce the risk of a constantly changing market.

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