In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume.[1] As a type of active management, it stands in contradiction to much of modern portfolio theory. The efficacy of technical analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable,[2] and research on whether technical analysis offers any benefit has produced mixed results.[3][4][5] It is distinguished from fundamental analysis, which considers a company's financial statements, health, and the overall state of the market and economy.
- ^ Kirkpatrick & Dahlquist (2006), p. 3
- ^ Andrew W. Lo; Jasmina Hasanhodzic (2010). The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals. Bloomberg Press. p. 150. ISBN 978-1576603499. Retrieved 8 August 2011.
- ^ Cite error: The named reference
SurveysReviewwas invoked but never defined (see the help page). - ^ Osler, Karen (July 2000). "Support for Resistance: Technical Analysis and Intraday Exchange Rates," FRBNY Economic Policy Review (abstract and paper here).
- ^ Cite error: The named reference
Foundationswas invoked but never defined (see the help page).