Glossary
Technical Analysis
Technical Analysis
Technical analysis is the study of historical price and volume data to forecast likely future price behaviour.
It rests on three assumptions: price discounts all known information, prices move in trends, and behavioural patterns repeat. Tools include chart structure, support and resistance, trend lines, candlestick patterns and indicators such as RSI, MACD and moving averages.
Technical analysis produces probabilities, not certainties. Its practical value is that it defines entry, invalidation and target levels precisely enough to manage risk, which is why it is usually combined with fundamental context rather than used alone.