What is technical analysis in detail?

Technical analysis is a methodology aimed at evaluating investments and trading opportunities by analyzing statistical data resulting from market activity, such as price movements and trading volumes. Technical analysts believe that all available information about financial assets is already reflected in the current market price, and therefore future trends can be predicted by studying historical price data and chart patterns.

The basic principles of technical analysis:

* The market discounts everything: This means that all factors that may affect the price of an asset (such as economic news, earnings, political developments) are already reflected in the current market price. Therefore, the technical analyst does not need to look for these fundamental factors, but rather focuses only on the price movement itself.

* Prices move in trends: Prices do not move randomly; they tend to move in specific trends (upward, downward, or sideways). The goal of technical analysis is to identify these trends and trade in their direction.

* History repeats itself: Technical analysts believe that the behavioral patterns of traders and investors repeat over time, leading to the repetition of chart patterns. By studying these historical patterns, future market behavior can be predicted. Stay tuned for the rest.