Technical Analysis of the Financial Markets

Technical analysis involves studying past price charts and market data to identify patterns and trends that suggest future price movements. Instead of focusing on a company’s financial health, it relies on tools like charts, indicators, and volume data to make predictions. Traders believe that historical price behavior reflects market psychology and can help forecast short-term or long-term trends. While it doesn't guarantee outcomes, technical analysis provides a structured way to evaluate market momentum and identify potential entry or exit points for trades.