Technical Analysis

“An art to predict the future movements of commodity based on historical behavior of prices.”
Analyzing statistics generated through market activity, such as past prices and volume, technical analysts do not attempt to measure a security’s intrinsic value but instead use charts and other tools to identify patterns that can suggest futures activity. Technical analysis theory is based on three premises:

  • Market action reflects everything
  • Prices move in trends
  • History repeats itself

Tools for Technical Analysis

  • Price Charts Line & Bar Charts
  • Support & Resistance Candle Stick Charts
  • Momentum Indicators Moving Averages
  • Pattern Extension Lines
  • Fibonacci levels
  • Pivot Points
  • Parabolic S&R, etc.
We at Enrichers give particular consideration to TIME FRAME CONVERGENCE. Basically, what it means is to analyze markets in several time frames and use both the trend-following indicators and oscillators. We make a strategic decision to trade long or short using trend-following indicators on long-term charts. We make tactical decisions to enter or exit using oscillators on shorter-term charts. Each screen utilizes a different timeframe and set of indicators. These screens filter out many trades that seem attractive at first. TIME FRAME CONVERGENCE promotes a careful and cautious approach to trading.