Can technical analysis be applied to all stocks?

This is a discussion on Can technical analysis be applied to all stocks? within the Technical Analysis forums, part of the Methods category; On a few occasions, I have noticed people discussing, whether technical analysis can be applied to certain stocks (like penny ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Nov 5, 2005, 5:15pm   #1
Joined Nov 2005
Question Can technical analysis be applied to all stocks?

On a few occasions, I have noticed people discussing, whether technical analysis can be applied to certain stocks (like penny stocks, or stocks with low volume) or not.

So I┤m wondering, is there a certain criteria for a stock to meet, before it can be analysed for a more probable result?

Thanks!
pirx is offline   Reply With Quote
Old Nov 6, 2005, 12:16pm   #2
Joined Dec 2002
Hi pirx

I would say that technical analysis can be applied to any financial instrument, regardless of its volume, price, gaps, slippage etc.

By looking at the stock on a chart, one can see things like gaps. I there are gaps in the prices from bar-bar or-candle-candle, it is an indication that the stock trades thinly on low volume, with slippage occurring. Therefore, because of it's unpredictabilty in the fluidity of it's movement, it may be a stock that certain traders would want to avoid, as they may not be able to apply their TA and money management strategy to the stock with much confidence.

But this does not mean that TA cannot be applied to it, because the TA has already helped you identify the nature of the stock (price, fluidity, gaps/slippage, volume - if you put it onto a chart).

Cheers

jtrader.
JTrader is offline   Reply With Quote
Old Nov 6, 2005, 5:29pm   #3
Joined Nov 2005
pirx started this thread Thanks for the explanation, jtrader!
pirx is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
AI for Level 2 analysis / Technical Analysis willlmanders Technical Analysis 6 Mar 25, 2007 2:11am
Trade2win In Technical Analysis of Stocks and Commodities techst T2W Feedback & Announcements 0 Sep 29, 2005 2:57pm
Technical Analysis of Stocks and Commodities 1997 - 2002 qazwsxedc The Foyer 1 Feb 11, 2005 12:28pm
Technical analysis on VOD-PON-BARC and other stocks CHARTY Stocks 2 Dec 24, 2004 9:22am
AdvicePlsOnBk - Martin J Ping (How to select stocks using Technical Analysis) EagleRock Educational Resources 5 May 5, 2004 7:32pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)