What is technical analysis?
Technical analysis is the study of past market data to identify trends and predict future market behavior. Technical analysts believe that prices move in trends and that these trends can be identified and used to make profitable trading decisions.
Technical analysis can be used on any time frame, but most traders use it on daily or weekly charts. It can be applied to stocks, indexes, forex, commodities, and other assets.
Cambridge.org
a method used to calculate the future value of shares by studying the patterns of their past behaviour rather than the fundamentals.
Wikipedia
In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results.
Different types of technical analysis
There are many different techniques that can be used for technical analysis, but some of the most popular include:
-Identifying support and resistance levels
-Identifying trend lines
-Using technical indicators
