An institutional research product written by ANDREW ADDISON – a successful Technical Analyst and Market Strategist. For more than 3 decades, Andy has provided alpha to institutional investors in domestic and international equities – helping them to capitalize on specific strategies/opportunities throughout the globe.
In October 2013, he left the “corporate world” after working at Fidelity for 10 years. His most recent position was Director of Technical Research/Co-Director of Research for Fidelity’s institutional asset management division (Pyramis Global Advisors managing $140 billion) for 7 years.
Our Technical Analysis is based on four primary concepts. They are Price, Relative Strength, Moving Averages, and Momentum. We begin with examining the price patterns of any stock/index/commodity to determine if it is preparing to advance (“Basing”) or decline (“Topping formation”), or if it is merely pausing in the direction of the major trend. Then we examine one of the most important features – Relative Strength. How is the security performing relative to its peer group, to its sector, and versus the entire market. Next we monitor how the price is acting with respect to its important moving averages. Finally we measure the security’s momentum to determine if it is confirming the price action, or if it is warning of a potential change in trend.