Glossary

Technical analysis is a method of evaluating securities 📈 by analysing historical price and volume data.

It aims to predict future price movements by identifying patterns, trends, and market signals. Technical analysts, also known as chartists, use various tools and techniques, such as moving averages, trendlines, and candlestick patterns, to make their predictions.

Example: A technical analyst might study a stock's 50-day moving average to determine if it's in an uptrend or a downtrend. If the stock's price is consistently above the moving average, it could signal a bullish trend, while a price consistently below the moving average could indicate a bearish trend.

Fun fact: The origins of technical analysis can be traced back to the 18th-century Japanese rice markets 🌾 where traders used candlestick charting techniques to predict price movements. These techniques are still widely used today in modern financial markets.