What Is Technical Analysis? Meaning & Example
Definition
Technical analysis studies price charts, volume and indicators to look for patterns and trends. It focuses on market behavior rather than company finances.
Related terms
Fundamental analysis evaluates an asset's underlying value using financial statements, economic data and business quality. It aims to estimate what something is truly worth.
CandlestickA candlestick is a chart symbol showing the open, high, low and close for a period. The body shows the open-to-close range, and the wicks show the extremes.
Moving AverageA moving average is the average price over a set number of past periods, updated as new data arrives. It smooths out noise to help show trend direction.
What is Technical Analysis?
Technical analysis studies price charts, volume and indicators to look for patterns and trends. It focuses on market behavior rather than company finances.
Can you give an example of Technical Analysis?
Using moving averages and RSI to decide when to enter a trade is a form of technical analysis.