What is technical analysis?

 Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns and trends that can suggest buying or selling opportunities.

Technical analysis can be used on any security with historical trading data, such as stocks, bonds, and commodities. It is often used in conjunction with fundamental analysis, which looks at a security's intrinsic value, such as its earnings, dividends, and assets.

There are many different techniques used in technical analysis, including chart patterns, trend analysis, and indicators. Some common chart patterns include head and shoulders, triangles, and double tops/bottoms. Trend analysis involves identifying the overall direction of a security's price movement, such as an uptrend or a downtrend. Indicators are mathematical calculations based on the price and/or volume of a security, and can be used to confirm price trends or to forecast future price movements.

Technical analysis can be a useful tool for traders and investors, but it is important to recognize that past performance is not necessarily indicative of future results. In addition, technical analysis should not be used in isolation, but rather as one component of a larger investment strategy.