Technical Analysis is the process of reading investment charts, soaking up current affairs, and gaging the public sentiment regarding investment opportunities. From there, the analyst makes a determination as to which direction a certain assets’ price will flow.
It is important to understand that Technical Analysis is never a sure thing. The idea is to predict the future behavior of humans based off of their past behavior. With that being said, learning about TA and incorporating it into your own investment strategy can greatly increase your probability of ending up with a profit.
There are several avenues of technical analysis, many of which are common sense while others take years of study to understand and fully grasp. Below are some of the different approaches.