A technical analyst, otherwise referred to as a market technician or chartist, is a stocks researcher or even a trader who examines and analyzes investments based on previous market prices as well as technical indicators.
Technicians accept that short term price movements are the consequence of demand and supply forces in the market for a given stock.
In this way, for technicians, the fundamentals of the stock are less important than the current balance of purchasers and sellers.
In light of the careful interpretation of previous trading patterns, technical analysts attempt to perceive this balance with the point of foreseeing future price movements.
Technical analysis, which can be defined as a trading strategy or discipline, is used to assess investments as well as recognize trading opportunities by breaking down statistical trends assembled from trading activity, for example, price movement and volume.
In contrast to fundamental analysts, who try to assess a stock's intrinsic value, technical analysts concentrate on patterns of price movements, trading signals as well as other analytical charting tools in order to assess a stock's strength or weakness.
Technical analysis uses price movements as well as chart histories to uncover trends as well as sentiment based upon revealed market psychology.