#PriceTrendAnalysis

Technical analysis is the use of historical market data to predict future price movements. Using insights from market psychology, behavioral economics, and quantitative analysis, technical analysts aim to use past performance to predict future market behavior. The two most common forms of technical analysis are chart patterns and technical (statistical) indicators.

Key Takeaways

Technical analysis attempts to predict future price movements, providing traders with the information needed to make a profit.

Traders apply technical analysis tools to charts in order to identify entry and exit points for potential trades.

An underlying assumption of technical analysis is that the market has processed all available information and that it is reflected in the price chart.