What is Technical Analysis?
Technical analysis is the study of trading histories to identify price trends in particular stocks, mutual funds, commodities, options or any financial instrument in specific market sectors or in the overall financial markets. The findings are used to predict probable, often short-term, trading patterns. Sophisticated computer programs have assisted in the speed and accuracy of this analysis.
The key components of technical analysis are price and volume. Technical analysis uses a wide variety of charts that show price over time.