Technical Analysis

Technical analysis is based on the premise that historical price patterns repeat and that price reflects all available information. It uses charts, patterns, indicators, and volume to identify trends and predict future movements. Key principles include: prices move in trends, history repeats itself, and market action discounts everything. Technical analysts study support/resistance, chart patterns (head and shoulders, triangles), indicators (RSI, MACD), and candlestick patterns. While critics argue it's self-fulfilling or random, many traders successfully use technical analysis. It's often combined with fundamental analysis for a complete approach.