Technical analysts believe that all known information is already reflected in a stock's price. They operate on three main assumptions:
Technical analysis is a trading discipline used to evaluate investments and identify trading opportunities. Unlike fundamental analysis, which focuses on a company's "value," technical analysis focuses on patterns of price movements and volume. 📊 The Core Philosophy technical analysis
Indicators can sometimes give "head fakes," leading to losing trades. Technical analysts believe that all known information is
Measuring the speed and change of price moves to find overbought or oversold conditions. which focuses on a company's "value
Smoothing out price data to identify the broader trend.
Fundamentals, news, and psychology are already priced in.
Visualizing the direction of the market (Up, Down, or Sideways).