Definition: Technical analysis is a method used in trading to evaluate and predict future price movements of financial instruments, such as currencies, stocks, and commodities, by analyzing historical price data and market statistics. It involves using charts and various technical indicators to identify patterns, trends, and potential trading opportunities.
By understanding and applying technical analysis, traders can enhance their ability to make informed decisions, capitalize on market opportunities, and improve their overall trading performance. Continuous learning and practice are essential for mastering technical analysis and refining trading strategies to adapt to changing market conditions.
Back to Glossary