Nuclear Petrochemicals IT Engineering Risk Management Business Subscriber Login Login to EMIS or to pick up your paid subscription. 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.