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Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. It is based on the idea that market trends, as shown by charts and other technical indicators, can predict future activity.

Technical analysts use chart patterns, trend lines, and other technical indicators to identify buying and selling opportunities. They may also use statistical techniques to analyze historical data and make forecasts about future market trends.

Unlike fundamental analysis, which focuses on a company’s financial health and intrinsic value, technical analysis is concerned with the supply and demand for a particular security, and how that is reflected in the price. Technical analysts believe that the price of a security reflects all relevant information and that trends and patterns in the price can be used to make informed investment decisions.

It is important to note that technical analysis is just one tool in the investment process, and it should be used in conjunction with other types of analysis, such as fundamental analysis and sentiment analysis. It is also important to keep in mind that past performance is not necessarily indicative of future results.