Understanding Technical Analysis_4. What Technical Analysis Can Contribute

Lesson 4: What Technical Analysis Can Contribute

Analyzing financial markets is not a walk in the park. They are affected by several
factors such as central bank's monetary policies, government's fiscal policies, and
internal economic factors.
Knowing those factors and understanding how they influence assets markets and
assets, and identifying the factors with the biggest impact are not easily done.
Furthermore, inaccuracies could happen when studying those factors, which is more
likely the situation of individual traders whose time and attention are limited.
There is, however, a simpler way where analysts can keep an eye on just one piece
of data price movement.