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Technical Analyst

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Definition of 'Technical Analyst'

A technical analyst, or technician, is a securities researcher who analyzes investments based on past market prices and technical indicators. Technicians believe that short term price movements are the result of supply and demand forces in the market for a given security. Thus, for technicians, the nature of the security is less relevant than the current balance of buyers and sellers. Based on careful interpretation of past trading patterns, technicians try to discern this balance with the aim of predicting future price movements.
Investopedia Says

Investopedia explains 'Technical Analyst'

Over time, technicians have developed a large toolbox of analysis techniques and indicators. In general, one technical indicator usually not seen as enough of a basis for making a trading decision. Rather, arrays of indicators are used to provide confirmation of a technician's hypothesis before taking action. There is generally no broad consensus on the best method of identifying future price movements, so most technicians gradually develop their own set of trading rules based on their knowledge and experience.

Articles Of Interest

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    Introduction To Technical Analysis Price Patterns

    To "find your game" in technical analysis, you need to be able to recognize reversals and continuations as they form.

  2. How Market Psychology Drives Technical Indicators

    The tenets of market psychology underlie each and every charting tool.

  3. An Introduction To The Relative Strength Index

    Learn the difference between relative strength and the relative strength index, a frequently used technical analysis oscillator.

  4. Candlestick Charting: Perfecting The Art

    Take a look at continuation patterns and how they can confirm or deny trends.

  5. Introduction to Types of Trading: Technical Traders

    Learn about the different traders and explore in detail the broader approach that looks to the past to predict the future.

  6. Find Turning Points With Single-Day Patterns

    On their own, single-day patterns can be unreliable, but that doesn't mean they can't be used effectively.

  7. Elliott Wave Theory

    Acquaint yourself with the principle built on the discovery that stock markets did not behave in a chaotic manner.

  8. An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.

  9. A Primer On The MACD

    Learn to trade in the direction of short-term momentum.

  10. Strong Volume Gainers, Can It Continue?

    Volume is one of those indicators that gets overlooked, likely because it's shown by default on almost every chart, making it a little dull. But volume is what drives markets. Big volume jumps ...
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