1. Write in your own wordings three paragraphs, typewritten, one page only. Paragraph 1; Explain how the Chartists or Technicians analyze, predict or explain changes in stock prices. Paragraph 2;...

QUESTION:
Explain how the Chartists or Technicians analyze, predict or explain changes in stock prices.
SOLUTION:
Chartists or Technicians is the general theory among technical analysts. It states that movement
in future price of a stock can be predicted from historical prices and volume data. Important
traders like Paul Tudor Jones and Ed Seykota are using technical analysis to show patterns from
which they have traded, giving millions of dollars in profits. Technicians are only interested in
the price movements in the market. They try to predict the future by analyzing past trends in
graphs of stock prices. They evaluate both the past movements of prices of common stock and
trading volume for a hint to the direction of future change. They...