ShmoopTube

00:00

Finance a la shmoop what is technical analysis okay we have fundamental [Fundamental analyst sat at a desk]

00:08

analysts who look at what the company does for a living how hard its products

00:13

are to manufacture how much they sell for how big global demand is how [Fundemental analyst check list]

00:18

powerful their brand is what their profit margins are in their growth

00:22

prospects from there how their balance sheet looks you know stuff like that

00:25

technical analysts don't care at all about any of that stuff those are

00:30

fundamental elements of a company technical analyst view stocks only as [Technical analyst chucks the list away]

00:34

trading sardines and really couldn't care less how the companies they are [Sardines with company logos on]

00:38

trading actually make money or run their businesses technical analysts follow

00:42

stock charts with influence from all kinds of shapes made by recent [Examples of shapes on a blackboard]

00:46

historical prices on a graph made by these stocks like you have a triple top

00:51

here right like so there's a hard line is trying to break out of that line line [Top line is highlighted]

00:55

says nook smacking you back down they can't break out so it's triple top and a [Hand smacks the price back down]

00:59

lot of gravity there so no maybe I'm short that stock at the end of that

01:03

triple top all right then you have the dome yeah it just kind of goes up but it

01:07

doesn't really want to break up so it's kind of trading down and then what do I

01:11

do with the stock here I don't know I don't know then you have descending tops [End of the dome is highlighted]

01:14

where Oh tried to break out oh but now it's a lower low because they miss their

01:18

earnings ah now it's a lower low and again they missed so the stocks going [Trend line showing the price going down]

01:22

nowhere it's pretty depressing around here then you have a saucer notably

01:25

shaped like a smiley face yeah you can see the two eyeballs there so you want [Smiley emoji appears]

01:29

to be long that stock somewhere in the middle there because

01:32

then it goes up and does better and yeah life's good and color and dimension gets

01:37

added to the stock charts via other technical things like volumes of shares [Colorful 3d stock chart]

01:41

traded in a given week or day or month if you're having a mini deja vu well it

01:45

might be because you just saw our M night Shyamalan dingdong

01:49

directed video directly cleverly called what is a Chartist and while they're [Girl working behind a computer]

01:54

basically the same thing technical analyst and chart us you know

01:58

same foot so yeah fundamental analyst concerned with nuts and bolts of the

02:01

operations of a business technical analyst concerned with pretty little [Descriptions of each analyst shown next to them]

02:06

drawings of the nuts and bolts reflection on a graph and interpreting

02:09

what that all means a kind of like staring at you know animal problems in [Looking at dung through a magnifying glass]

02:14

the jungle mental health analyst well I had to get a lot of these guys in their

02:18

office sorry different kind of therapy [Both the analysts at a therapist]

Full Transcript