Technical analysis is a term used to define the process of forecasting future price movements based on the past price movements within stock charts. It is with the help of technical analysis that investors are able to make financial decisions of buying, holding, or selling stocks.

Although technical analysis doesn’t make accurate predictions, it helps investors anticipate the future. Let’s say if a person is willing to invest in a stock, they will first select a stock and analyze its past price fluctuations to see whether it will offer fruitful results in the future or not.

The purpose of technical analysis is to help the investor make a more financially sound investment decision. The price is the key to success in stock market investment. The supply and demand of stocks all depend upon technical analysis. By evaluating the history of stock prices, you get a future reading of what a particular stock would be priced at.

When analyzing the stock charts, you can create price charts that help determine your next move. With the help of technical analysis, you are able to identify the following factors: