It helps traders and investors navigate the gap between intrinsic value and market price by leveraging techniques like statistical analysis and behavioral economics. Technical analysis helps guide traders to what is most likely to happen given past information. Most investors use both technical and fundamental analysis to make decisions.
Key Takeaways
Technical analysis, or using charts to identify trading signals and price patterns, may seem overwhelming or esoteric at first.
Beginners should first understand why technical analysis works as a window into market psychology to identify opportunities to profit.
Focus on a particular trading approach and develop a disciplined strategy that you can follow without letting emotions or second-guessing get in the way.