Technical Analysis What Is Technical Analysis? Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. KEY TAKEAWAYS . Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts. . Technical analysts believe past trading activity and price changes of a security 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. Understanding Technical Analysis Unlike fundamental analysis, which attempts to evaluate a security's value based on business results such as sales and earnings, technical analysis focuses on the study of pr...
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