Get Technical
Simply stated, Technical Analysis (TA) is the projecting of likely future market price movements based on an examination of past price action. TA is applicable to any tradable instrument where the price is influenced by the forces of supply and demand.
Price is the cornerstone component of TA, as market technicians believe that past and current market prices reflect the combined knowledge and actions of ALL market participants, including traders, investors, and portfolio managers. Conversely, Fundamental analysts are more concerned with interpreting “why” the price is what it is. From a technician’s perspective, the fact that the price is going up or down is more important than the reason, as trying to interpret and balance the psychology of all market participants in determining their individual reasonings would be an impossible task. In TA, “Price is what it is.”
PivotPoint Advisors believe that the task of striving for optimal portfolio performance can be greatly aided by properly timed entries and exits. After all, it is no secret that market timing plays a critical role in portfolio performance. TA can help define demand (support) and supply (resistance), potential breakout levels, and whether the market is consolidating or trending, which we believe can result in improved portfolio performance versus what can sometimes otherwise result in “buy and mold”.
View how professional trader Don Miller uses technical analysis to help determine market bias:
In the second video, Don further expands on the concept of applying effective professional short-term trading techniques to longer term asset management. Click here to view enlarged charts.