Traders who use technical analysis to make trading decisions look at a stock’s historical trading data and hope to use it to predict movements in the stock’s price. By placing this data in a chart and studying it, traders can observe certain patterns and identify “indicators” that they interpret as cues to buy or sell a stock.

Since traders who use technical analysis believe that historical trading patterns give them clues as to how a stock will trade in the future, they try to identify these patterns as they emerge again.

Technical analysis is also used to predict the price movements of commodities, currencies, or stock market indices.

Data that’s used in technical analysis includes the price of a stock, its trading volume, and averages that show trends over time.

This section discusses some of the technical analysis studies that can be used to make your own trading decisions.