:: definitions

Traders101.com reproduces this definition here under license for your convenience.

Technical Analysis is the study and modelling of the past price movements of financial instruments in the hope this will help to predict future price movements. Technical analysis involves the use of math-based indicators such as simple moving averages, and the interpretation of the various price patterns on charts, such as 'flag' patterns, or 'head and shoulder' patterns, or even the Japanese 'candlestick' formations. Some traders think technical analysis is all that counts, others believe only in fundamental analysis. Day traders are not interested in fundamental analysis, as the timescale on which they must operate is far too short for it to be meaningful. Technical analysis can also be used in long term trading as well as short-term trading.