Technical Analysis

Technical analysis is the study of past market data — primarily price and volume — to understand the current balance of supply and demand and to plan trades.

Three ideas sit at its core: • Price reflects known information — the current price already discounts what participants collectively know. • Prices tend to move in trends — once a direction is established, it often persists until something changes it. • Behaviour repeats — because human psychology is consistent, recognisable patterns tend to recur.

Technical analysis does not predict the future with certainty. It helps you define where you are wrong (your stop), where you might be right (your target), and how to manage the trade in between. It works best combined with sound risk management.