Glossary Term

Technical Analysis

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Technical analysis is a school of market analysis that is only interested in historical price action as it comes to be represented on a price chart. This school of trading takes three fundamental ideas for granted. Firstly that all the knowledge regarding an underlying asset has already been priced-in. Secondly, that all market moves occur due to trends that move in certain distinct ways (up, down, laterally and combinations of all three). Finally that these trends tend to repeat themselves, which gives technical analysts with an understanding of the specifics of these repeatable trends an advantage over other market participants.

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What is technical analysis? A Traders Expert explanation

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