Professional Trading

6天前

What Is Technical Analysis?
Technical analysis is a method of evaluating statistical trends in trading activity, typically involving price movement and volume. It is used to identify trading and investment opportunities.

Unlike fundamental analysis, which attempts to evaluate a security's value based on financial information such as sales and earnings, technical analysis focuses on price and volume to draw conclusions about future price movements.

Key Takeaways
Technical analysis is used to evaluate price trends and patterns and thereby identify potential investments and trading opportunities.
Technical analysts believe past trading activity and a security's price changes can be valuable indicators of the security's future price movements.
Technical analysis may be contrasted with fundamental analysis, which focuses on a company's financials rather than historical price patterns or stock trends.
Technical analysis was introduced by Charles Dow.