Technical Analysis

Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.

Technical analysis is a strategy for predicting movement in the stock market, or other securities markets, that relies on information from short periods of time. For this reason, day traders or other short-term traders often use technical analysis.