Technical analysis is a method of evaluating financial assets based on historical price and volume data. Unlike fundamental analysis, which focuses on intrinsic value, technical analysis uses charts, patterns, and indicators to predict future price movements.
Traders use tools like moving averages, trend lines, and oscillators to identify trends, support and resistance levels, and potential entry and exit points. The approach is commonly used in short-term trading but can also complement long-term investment strategies.
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