Technical analysis is a method of financial market analysis that examines price movements, trading volume, and chart patterns to derive probabilities for future market movements. It is based on the belief that all relevant information is already reflected in the price and that market behavior tends to follow recurring patterns. Technical analysis uses a wide range of tools: trendlines, support and resistance zones, chart patterns, technical indicators (such as RSI, MACD, or Bollinger Bands), Fibonacci retracements, and candlestick charts. It can be applied across all timeframes—from seconds to monthly charts. Technical analysis is widely used by traders and algorithmic trading systems. It complements fundamental and sentiment analysis and often serves as the basis for entry and exit decisions.
