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.

BREAKING DOWN '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.