Technical analysis

Technical analysis is a popular approach used to evaluate securities in financial markets. This methodology involves analysing statistics generated by market activity, including past prices and volume. By using charts and other tools, technical analysts aim to identify patterns that can suggest potential buying or selling opportunities.

Using various technical indicators and tools, such as moving averages, trendlines, support and resistance levels, and oscillators, technical analysts try to identify market trends, momentum, and potential reversals. These patterns and indicators can help traders make informed decisions on when to enter or exit a trade.

While technical analysis is a widely used approach, it is important to remember that it is not a guaranteed method and should be used in conjunction with other analysis tools and risk management strategies. Additionally, factors such as global news events, economic data releases, and unexpected market events can all impact the effectiveness of technical analysis.