Technical analysis is a method used to predict
the future stock price movement using historic data.
In this method, the financials of a company or not taken account
of while deciding on buying or selling a stock.
In technical analysis, the pattern of price and volumes of a
stock traded are the key parameters. There are many types of
charts and methods used in technical analysis which will be discussed
in next chapters.
A technical analyst believes that a stock or market moves in
a predictible pattern untill a set of rules get changed.
Technical analysis may be very useful if you can compare the
predictions made using the fundamental analysis.
Critics of tech analysis like well known Warren Buffett opines
technical analysis in his own words "I realized technical
analysis didn't work when I turned the charts upside down and
didn't get a different answer" and "If past history
was all there was to the game, the richest people would be librarians."
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