1. Technical Analysis: Introduction
  2. Technical Analysis: The Basic Assumptions
  3. Technical Analysis: Fundamental Vs. Technical Analysis
  4. Technical Analysis: The Use Of Trend
  5. Technical Analysis: Support And Resistance
  6. Technical Analysis: The Importance Of Volume
  7. Technical Analysis: What Is A Chart?
  8. Technical Analysis: Chart Types
  9. Technical Analysis: Chart Patterns
  10. Technical Analysis: Moving Averages
  11. Technical Analysis: Indicators And Oscillators
  12. Technical Analysis: Conclusion

There are two primary methods used to analyze securities and make investment decisions: fundamental analysis and technical analysis. Fundamental analysis involves analyzing a company’s financial statements to determine the fair value of the business, while technical analysis assumes that a security’s price already reflects all publicly-available information and instead focuses on the statistical analysis of price movements.

[ If you're looking for a self-paced video course to help you learn technical analysis, Investopedia Academy has a 5-hour course taught by an experienced Chartered Market Technician. Learn more about the Technical Analysis course.

Technical analysis may appear complicated on the surface, but it boils down to an analysis of supply and demand in the market to determine where the price trend is headed. In other words, technical analysis attempts to understand the market sentiment behind price trends rather than analyzing a security’s fundamental attributes. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor over the long-term.

In this tutorial, you will be introduced to technical analysis and develop the foundation needed to understand more advanced concepts down the road.


Technical Analysis: The Basic Assumptions
Related Articles
  1. Trading

    Debunking 8 Myths About Technical Analysis

    Investopedia exposes a few common myths about technical analysis.
  2. Investing

    Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually profit by doing market analysis. However, even experienced investors ...
  3. Trading

    Technical Analysis Strategies for Beginners

    Some investors find fundamentals boring. For those types, there's technical analysis. The strategies aren't difficult, but require patience and sometimes, early rising.
  4. Investing

    Fundamentals And Technicals: Together At Last

    It's a big mistake for a fundamental investor to ignore technical analysis. Find out how to become chart smart.
  5. Investing

    Fundamental Analysis For Traders

    Find out how this method can be applied strategically to increase profit.
  6. Trading

    Use Price Action Trading Strategy for Results

    Bored by the fixed rules of technical and fundamental analysis? Price action trading allows you to customize your own trading strategy.
Frequently Asked Questions
  1. What's considered to be a good debt-to-income (DTI) ratio?

    Your debt-to-income ratio helps lenders determine your credit worthiness. Find out how to calculate your score and how to ...
  2. What is the difference between a loan and a line of credit?

    Learn to differentiate between lines of credit and standard loans, and determine when you are likely to use each method of ...
  3. What does a Chief Financial Officer (CFO) do?

    A CFO is responsible for accurate reporting of a company's financial information, investing the company's money and identifying ...
  4. How did George Soros break the Bank of England?

    George Soros pocketed $1 billion by betting against the British pound, cementing his reputation as the premier currency speculator ...
Trading Center