Technical security analysis is based on the study of short-term price changes. Technical analysts believe that in the short term, price changes are primarily driven by investor psychology, especially the irrational component. This implies that investors tend to follow each other and repeat the patterns of their actions time after time. Accordingly, technical analysts study trends and patterns of security price movements to predict where prices will move next.
This site uses Akismet to reduce spam. Learn how your comment data is processed.