While both try to solve the same problem of price direction , they differ in their evaluation form .
The school fundamentalist studies the causes of the price movement , while the technical school studies the effects .
The technical analystargues that the effects are all he wants or needs to know and why prices moveare unnecessary .
The fundamental analyst , on the other hand, always have to know why.
The fundamentalist schoolworking with data from the economic and financial study of the company within the micro and macro economic scenario ,possibly linked to the international scene , while the school works with technical data provided byChanges in prices and volumes , using charts , theories and mathematical- statistical indicators related to them .
Being the local stock exchanges where pricesform freely by confrontation betweenthe forces of supply and demand , the technicianassumes that all he is interested in analyzingprice movement , as heembeds the performance and the expectation of allagents participating in the market.
Put another way, the technician for theprice is the resultant of all the forcesoperate in the market .
To interpret it detects the predominant force .Thus, for example, an investor whoaccess to some kind of informationprivileged about a particular companyand decide to take advantage of this information ,hardly not have detected its performanceby technical analyst , although this does notknow why or who is acting .
butto the coach , what matters is not thereason but its reflection on the price .Over the past several years taught courses in technical analysis building on the conventional modeladopted for all courses technical analysis , starting from its origin , followed by the presentation ofsome of the various theories , leaving the end of the practical part , the scarcity of time was neverfully dissected . In fact , all that bothered me a lot because he thought much unnecessarybut it was what the students hoped to find a technical analysis course .In this , I decided to tear down the fantasy and the reality of what I think necessary for a person to havesatisfactory performance in any market where prices are formed freely by supply anddemand. For this purpose it will be necessary to be possible to accept as " dogma " such thatmarket where prices are formed freely , is nothing more than a game where it traded assetsare chips. The only requirement is that these previous chips are widely traded ( who have liquidity ) .
Like a game of chess or dama , our game will also be played on a board . Only ourthe tray is limited by a vertical and a horizontal price of time, where the horizontal linesImaginary obstacles are to be overcome and the diagonals our way of locomotion . our partsare always the same : price bars . They can move up , down or sideways ,always toward the right .
