Technical analysis in the investing and trading universe has been a hot topic for years and continues to be. Whether you are new to investing or a savvy investor, getting familiar with the methods of technical analysis could improve your trading style or at minimum provide some insight.
The most popular methods in technical analysis are:
- Moving Average e.g. MA20, MA50, MA200
- MACD or in its full form Moving Average Convergence Divergence
- Relative Strength Index or RSI
An alternative approach to investing is Fundamental Analysis which focuses more on reviewing the annual reports and underlying factors of a company.