Technical analysis is a methodology for forecasting future price movements through the study of historical market data, primarily price and volume. Unlike fundamental analysis, it focuses on identifying recurring patterns and trends in market behavior rather than evaluating intrinsic corporate value. This chapter introduces essential technical tools—including price charts, trend analysis, support and resistance, technical indicators, and chart patterns—and explains their application across various financial markets. It also explores the behavioral foundations of technical analysis, highlighting how investor psychology and collective market behavior contribute to the formation and predictive power of technical signals.

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Technical Analysis

  • Shuai Chen

摘要

Technical analysis is a methodology for forecasting future price movements through the study of historical market data, primarily price and volume. Unlike fundamental analysis, it focuses on identifying recurring patterns and trends in market behavior rather than evaluating intrinsic corporate value. This chapter introduces essential technical tools—including price charts, trend analysis, support and resistance, technical indicators, and chart patterns—and explains their application across various financial markets. It also explores the behavioral foundations of technical analysis, highlighting how investor psychology and collective market behavior contribute to the formation and predictive power of technical signals.