Technical Analysis

Category: science

The study of past market data—primarily price and volume—to forecast the direction of future price movements.

Technical analysis rejects fundamental valuation in favor of "price action." Analysts use chart patterns, trendlines, and mathematical indicators (like RSI or MACD) to identify entry and exit points, operating on the theory that all known market information is already priced into the chart.

Common Examples

• The trading desk relies heavily on technical analysis to time their short-term position entries in the high-volatility tech sector.
• While fundamental analysis values the company, technical analysis values the trend; we use both to mitigate entry-point risk.