Technical Analysis
Technical analysis is a method used to evaluate and forecast the price movements of financial assets, such as stocks or currencies, by examining historical price charts and trading volume. Analysts look for patterns, trends, and indicators to make predictions about future price behavior. Unlike fundamental analysis, which focuses on a company's financial health or economic factors, technical analysis primarily relies on the assumption that past price movements can inform future activity, helping traders make decisions about buying or selling assets based on market behavior rather than underlying value.
Additional Insights
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Technical analysis is a method used to evaluate securities by analyzing statistical trends from trading activity, such as price movement and volume. Instead of focusing on a company's fundamentals like earnings or growth prospects, it relies on charts and historical data to predict future price movements. Traders look for patterns or indicators that suggest whether a stock or other asset is likely to rise or fall in value. The goal is to identify trading opportunities based on price trends and market sentiment, helping investors make informed decisions about buying and selling.