What is technical analysis?
In the financial markets, there are two main methods of market analysis. Both these methods are employed by traders in order to analyse price movements and make wise investments.
The main difference between the two schools of thought is their approach towards their analysis of the market. To determine the future activity of an asset or commodity, technical analysis studies its historical performance, focusing on its price movements in the market. Conversely, fundamental analysis concentrates primarily on external factors that include economic, geopolitical and social conditions, and how these affect or could affect the price of an asset.
In this section, we will look at the basics of technical analysis in more detail, examine the importance of chart patterns, moving averages and indicators, and show how you can use technical analysis to improve your trading style.