technical analysis

Definition

A method of evaluating securities by relying on the assumption that market data, such as charts of price, volume, and open interest, can help predict future (usually short-term) market trends. Unlike fundamental analysis, the intrinsic value of the security is not considered. Technical analysts believe that they can accurately predict the future price of a stock by looking at its historical prices and other trading variables. Technical analysis assumes that market psychology influences trading in a way that enables predicting when a stock will rise or fall. For that reason, many technical analysts are also market timers, who believe that technical analysis can be applied just as easily to the market as a whole as to an individual stock.

Use technical analysis in a sentence

You should try and have a deep technical analysis to make sure that everything will continue to go smoothly for you.

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After some thorough technical analysis,I was ready to begin the next stage of the experiment, which would take much longer.

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John's economic theory had some gaping loopholes, because while he was skilled at technical analysis, he had not considered factoring in the current market.

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