Technical Analysis is a means of identifying and understanding this repetitive nature. Through the study of charts and indicators over time we begin to see patterns emerge. A double bottom, for example, happens when prices reach old lows and investors feel the stock is undervalued. Price-action events like these are nothing more than recurring abnormalities. The goal of Technical Analysis is to determine if such abnormalities can be used as trading signals.
Successful analysis requires the study of past events in an effort to validate current events.
This evaluation must consider trends and volatility two variables that can make or break the results of any trading system, and which require back-testing on a continual basis. The TradeTrack Simulation Engine reviews the price-action history of all US stocks, identifying past trading signals and testing various trading strategies. We do not purport to tell people, or suggest to people, what securities they should buy or sell. Trading and investing often involves a very high degree of risk. Past results are not indicative of future returns.