Technical Analysis of Stocks and Trends

DEFINITION of 'Technical Analysis of Stocks and Trends'

The academic study of historical chart patterns and trends of publicly traded stocks. Technical analysis of stocks and trends employs the use of tools such as bar or candlestick charts and trading volumes to determine the future behavior of a stock. Much of this practice involves discovering the overall trend line of a stock's movement.

BREAKING DOWN 'Technical Analysis of Stocks and Trends'

Technical analysis of stocks and trends has been used by serious traders for decades. Although it does not guarantee success and is not 100% accurate, it is still one of the two key methods of analyzing stock prices, along with fundamental analysis. Technical analysis of stocks and trends employs chart patterns, such as head-and-shoulders formations and drop-base-rallies.

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