What is technical analysis?
TA?
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158 points
dyson answered 2 years ago …
"Technical analysis is the study of market action, primarily through the use of charts, for the purpose of forecasting future price trends."
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APHDE25 answered 2 years ago …
An examination of the CURRENT market situation.
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Stephanie answered 2 years ago …
Technical analysis is a system of compiling all the statistics of a company, market, etc and charting that information in various ways as to discern a pattern that can be used to predict the future.
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josephconlin answered 2 years ago …
Perhaps it helps to have a contrast. Fundamental analysis takes a close look at the company itself. Income statements and balance sheets are used to calculate various ratios and determine what the company is doing as a business. Knowing as much as possible about the management team is also a big part.
Technical analysis focuses on the movement of the stock rather than the underlying company. How did the stock price change over time, how many shares were traded (known as volume), and how have these things changed over time. The idea is that much, if not all, of what can be known about the company is reflected in the stock price, but that human emotions can also influence the price.
