• Technical analysis is a method of evaluating stocks, indices, or other securities by studying price charts, market trends, and trading volumes. Instead of analysing a company’s financial fundamentals, technical analysis focuses on market behaviour to predict future price movements.
• The core belief behind technical analysis is that “price reflects everything” — meaning all information, expectations, and emotions of market participants are already factored into the price.
• How Technical Analysis Works
• Uses Price Charts
  Analysts study charts (like candlestick charts) to identify patterns that indicate future movements.
• Identifies Trends
  Markets move in trends—uptrend, downtrend, or sideways. Technical analysis helps investors ride trends instead of going against them.
• Applies Indicators & Tools
  Popular indicators include:
• Moving Averages (MA)
• RSI (Relative Strength Index)
• MACD (Moving Average Convergence Divergence)
• Bollinger Bands
  These help in identifying entry and exit points.
• Looks for Chart Patterns
  Patterns like head & shoulders, double tops, flags, triangles, and breakouts help traders anticipate price direction.
• Uses Support and Resistance Levels
  These levels show where prices tend to stop falling (support) or stop rising (resistance), guiding buy/sell decisions.
• Focuses on Market Psychology
  Technical analysis captures crowd behaviour—fear, greed, and herd mentality—which often drive price movements.
• Short-Term Oriented
  It is commonly used by traders for short-term decisions, but long-term investors also use it to refine buying/selling levels.

Technical Analysis vs Fundamental Analysis

Technical: Studies price movements and charts

Fundamental: Studies company financials, business model, and valuations

Both can complement each other depending on your investment approach.