technical analysis

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Definition of "Technical Analysis"

Technical analysis is a method used mainly in finance and investing. It involves studying past price movements of stocks, commodities, or other financial instruments to predict their future price changes. The idea is that by looking at charts and patterns from the past, investors can make informed decisions about buying or selling.

Usage Instructions

• Part of Speech: Noun
• Common Contexts: Used in discussions about investing, finance, stock trading, and market analysis.

Example Sentences

1. "Many traders rely on technical analysis to decide when to buy or sell stocks."
2. "By using technical analysis, she was able to identify a potential upward trend in the stock price."

Advanced Usage

• Technical analysts: People who specialize in performing technical analysis.
• Charts and Patterns: Technical analysis often involves using various charts (like line charts or candlestick charts) to visualize price movements and identify trends.

Word Variants

• Technical Analyst: A person who practices technical analysis.
• Technical Indicator: A statistic derived from price or volume data that helps in technical analysis.

Different Meanings

In general usage, "technical" can refer to any specific or specialized method or procedure in various fields, not just finance. For example, "technical skills" in a job context refers to specialized abilities related to a profession.

Synonyms

• Market analysis: A broader term that can include both technical and fundamental analysis.
• Chart analysis: Another term often used interchangeably with technical analysis.

Idioms and Phrasal Verbs

While there are no direct idioms or phrasal verbs specifically for "technical analysis," you might hear phrases like:

Summary

In summary, technical analysis is a valuable tool for investors and traders who want to understand market trends based on past price movements.

Academic

Noun

1. (stock exchange) analysis of past price changes in the hope of forecasting future price changes

Synonyms

• technical analysis of stock trends