Let's define exactly what technical analysis is. At its core, technical analysis is the study of the market itself, rather than the goods that trade in the market, in determining the investment-worthiness of an asset. Technicians are primarily concerned with price and volume and with the supply and demand factors that actually move an asset's value.

To a technical analyst, the human characteristics of the market might be irrational but nonetheless, they exist. Because investors' attitudes often repeat, investors' actions in the marketplace often repeat as well. I.e., patterns of price movement will develop on a chart that a technical analyst believes have predictive qualities.

It is important to understand that the realm of technical analysis is not limited to charting. Technical analysis is always primarily concerned with price trends. Anything that can influence the price trend is of interest to a technical analyst.

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