Quick Finance Tip - Technical Analysis Principles

Technical Analysis Principles includes:

1. The study of market trends or patterns;
2. The market reflects the collective sentiment of market participants. This refers to the volume of buying/selling of securities;
3. The reliance of market participants of (a) trading in the market and (b) influencing price and volume;
4. The belief that emotions play a role and values are driven by humans (behavioral finance does play a role);
5. The theory that the equity market moves roughly six months ahead of inflection points in the broad economy