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A price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots. On the chart, the y-axis (vertical axis) represents the price scale and the x-axis (horizontal axis) represents the time scale. Prices are plotted from left to right across the x-axis with the most recent plot being the furthest right. The price plot for IBM extends from January 1, 1999 to March 13, 2000. Technicians, technical analysts and chartists use charts to analyze a wide array of securities and forecast future price movements. The word "securities" refers to any tradable financial instrument or quantifiable index such as stocks, bonds, commodities, futures or market indices. Any security with price data over a period of time can be used to form a chart for analysis. While technical analysts use charts almost exclusively, the use of charts is not limited to just technical analysis. Because charts provide an easy-to-...

Technical Analysis is the study of past price and volume trends to judge the direction of future price movements. Technical analysis assume that prices take a randon walk and one can judge the future price movements based on the past trends. That way, Tech analysis helps investors to take their investment decisions. Methods of Tech Analysis There are two main methods for studying investment data: technical analysis, the study of price and volume trends and fundamental analysis, the study of a company or industry's earnings. Technical analysis itself has two main branches - one dependent on intuition and interpretation, the other on quickly crunching colossal amounts of data. Acolytes of the first decipher information about trading through interpreting price charts. Theirs is the rarefied realm of head-and-shoulders patterns, double-bottoms, flags and pennants - patterns that their experienced eyes become increasingly adept at discerning. Computers have limited power to replicate th...