Technical analysis

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Technical analysis [1] is an approach to forecasting prices that examines the patterns of price change, rates of change, and changes in volume of trading and open interest, without regard for the underlying fundamental market factors.

It attempts to predict future financial price movements based on an examination of past price movements. However, like weather forecasts, technical analysis does not result in absolute predictions. Instead, it can help investors anticipate what is likely to happen to prices over time.

Technical analysis uses a wide variety of charts that show price over time. [2]

ALSO SEE: Technical indicator

References

  1. Glossary. National Futures Association.
  2. What is Technical Analysis?. StockCharts.com.