Technical analysis is an approach to figure out price actions, examine the financial markets, using charts, historical prices, market statistics.
It is founded on the idea that if a trader can identify patterns, he will be able to produce accurate expectations for future price moves.
is an approach of two to analysis the market, the second is fundamental analysis.
Fundamental analysis focuses on asset’s “real value” considering core value and external factors, meanwhile technical analysis depends on charts.
An analysts will be identifying patterns on charts, to predict the future.
Technical analysts can use a wide array of tools to help them find the trend and patterns, that includes:
All tools aim at single purpose: make the analyst understand the chart, and identify trends easily.