Technical Analysis

Technical analysis is a method of evaluating and forecasting the future price movements of financial assets—such as stocks, bonds, or currencies—by analyzing historical market data, primarily price and trading volume. Instead of focusing on a company's financial statements or economic factors, technical analysis employs price charts, statistical patterns, and specialized indicators to identify trends and potential buy or sell signals in the market.​

This approach is based on the ideas that market prices reflect all known information, prices move in trends, and history tends to repeat itself. Technical analysis is used extensively for short-term trading, but also helps investors find entry and exit points and assess strength or weakness relative to the broader market.