NEW YORK - Bollinger bands, Elliot waves, Gann analysis, Fibonacci retracements, breakouts and stochastics are terms used in the mysterious world of technical analysis. Technical practitioners pick stocks by looking for patterns and trends in price movement and trading activity.
Such analysis can get quite complicated, and the rules on how to interpret trends and patterns can vary according to market conditions. "Where technical analysts earn their money is knowing which technical indicators to use and when to use them," says John Schlitz, vice president and director of technical research at Instinet Research.
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