Definiton

An analysis technique used to predict the trend of a stock price by studying past data markets, especially on price and volume movements.

Initially, technical analysis only considered the price movement of the market or instrument in question, assuming that prices reflected all relevant factors before an investor became aware of them through some other means.

Technical analysis can use various models and bases, for example, for price movements, methods such as the Relative Strength index, moving average index, regression, inter-market and intra-market correlations, cycles or in the classic way, namely analyzing chart patterns, are used.

Type of chart in technical analysis:

1. Line Chart
   Line charts usually display closing proces. Each closing price is linked to the previous closing price to create an easy-to-follow continuous line.
2. Bar Chart
   Bar graphs display the highest, lowest, open and close (HLOC) prices for each specified period for the bar. The vertical lines are created by the highest and lowest prices. The line to the left of the bar is the open price and the line to the right indicates the close price.
3. Candlestick Chart
   Candlestick charts display the highest, lowest, open and close (HLOC) prices for each specified period for the candlestick. The "Body" of each candlestick represents the opening and closing prices while the "Wicks" of the candles display the high and low prices for eacheach period.