Glossary

Technical analysis

Analysis of historical data on the price and trading volume of a security.

Technical analysis helps investors to predict the future price development of a stock on the basis of historical data such as price and trading volume. Instruments used in technical analysis include market capitalization and volatility, as well as the beta factor and the correlation coefficient of a stock with respect to a benchmark index. The latter two variables are used to value stocks in relation to the overall market.

Chart analysis is an important component of technical analysis.

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