What is Technical Analysis?
Technical analysis focuses exclusively on the price movements of a market, while fundamental analysis looks at the wider economic factors that can affect its price.
You’ll often find traders identifying themselves as either technical or fundamental analysts.Though ultimately a grasp of both forms of analysis will give you the best platform to trade the financial markets.
In this course we’ll be focusing exclusively on technical analysis.
Technical analysis is based on the premise that what happens in the past can be used to predict what might happen in the future – although of course you have to remember this can never be guaranteed, which means technical analysis shouldn’t be used in isolation.
Technical analysis what traders use to study the historic price movements of markets. And by far the easiest way to do this is by looking at charts.
By examining the trends and patterns in market prices, technical analysts can interpret the behaviour of buyers and sellers to help give an indication of where the market could go next. Since there are certain types of behavioural pattern that have occurred repeatedly in the past, it’s possible to identify them as they emerge and predict the likely future movement of the market.