Europe Technical analysis is a method of forecasting the price of a commodity based on studies of what has happened to its price in the past C onsensus forecasts take the best opinions of market commentators on where prices are going to go, and report this. F undamental analysis tries to forecast prices based on a study of the supply and demand factors affecting prices. Technical analysis cannot be used to predict the future. It is not a method of fortune-telling. Many traders believe that technicals can be used at best as a short-term guide to market movement.
Chartists have a habit of couching their predictions in the conditional tense.
But it sounds much more plausible. Reputedly good for spotting short-term entry and exit points for the market. Definite price targets can be established, rather than just working out market direction. The results can be tested and optimized. Chart basics Trends Technical analysis assumes that prices do not move randomly but in distinct trends.