The principles of chart analysis apply to both stocks and futures. Actually, technical analysis was first applied to the stock market and later adapted to futures. With the introduction of stock index futures, the dividing line between these two areas is rapidly disap­pearing. International stock markets are also charted and analyzed according to technical principles. (See Figure 1.2.)
Financial futures, including interest rate markets and foreign currencies, have become enormously popular over the past decade and have proven to be excellent subjects for chart analysis.
Technical principles play a role in options trading. Technical forecasting can also be used to great advantage in the hedging proces..(SSSSS)