Technical analysis (AT) consists in the study of the performance of a security (or of a market) through the analysis of historical series of prices and volumes.
The results can be presented in graphic form (linear, point & figure, candlestick) or algorithmic.
Fundamental concepts of technical analysis are:
- the support, minimum point that the security has had in the past and possible rebound point of the price itself;
- the resistance, the maximum point that the stock has had in the past and possible rebound point when the stock rises.
For further information: How to identify supports and resistances and exploit them profitably
More articulated and deriving from the two previous concepts is that of trend line.
Technical analysis is used to make predict the price of a financial instrument and make more accurate trading decisions.
Unlike algorithmic analysis, technical analysis allows the investor to choose the perfect timing for an investment.
