Well, by looking at past history. And history in the world of technical analysis is all about price, value, and volume. So price and value, depending on what you're trading and volume. But that's the other great thing about technical analysis is once you learn it, you can go from trading stocks to futures to options to Forex to cryptocurrency to whatever you want because all those quote-unquote things, all those assets have a price and value, and then there's volume attached with that. But this is what it's all about for technical analysis, trying to gauge people's emotions, trying to figure out how to best capitalize on how people's emotions have influenced supply and demand looking back at the past. past can be a great indicator of the future. Now I didn't say a guarantee of the future, but if you take and look at how people have acted in the past under certain circumstances, you know that can provide value going into the future.
They have many uses in various forms, even though they are complex they can fundamentally alter the traits of any portfolio if used properly with the right knowledge, and tools & I am here to help you achieve that.
Starting in the 1970s and increasingly in the 1980s and 90s, the world became a riskier place for the financial institutions. Swings in interest rates widened, and the bond and stock markets went through some episodes of increased volatility. As a result of these developments, managers of financial institutions became more concerned with reducing the risk their institutions faced. Given the greater demand for risk reduction, the process of financial innovation came to the rescue by producing new financial instruments that helped financial institution managers manage risk better. These instruments, called derivatives, have payoffs that are linked to previously issued securities and are extremely useful risk reduction tools.