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What is Technical Analysis?

Updated October 21, 2026

Technical analysis uses price charts and indicators to look for trading setups.

Technical traders believe price history leaves clues. They study trends, levels and indicators.

Most trading bots are based on technical rules.

It's not a crystal ball. It gives odds, not certainty.

Example

You buy because price bounced off support and the RSI turned up.

Questions people ask

Is technical analysis reliable?

It's a tool for odds, not a promise.

What should I learn first?

Trends, support and resistance, and basic risk rules.

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More questions people ask

What are candlestick patterns in technical analysis?

Candlestick patterns are shapes formed by price candles on a chart that traders use to guess what might happen next. Each candle shows the open, high, low, and close for a time period, and certain shapes or combos are said to hint at a reversal or continuation. They're a popular part of technical analysis, but they're not a sure thing, and trading based on them can still lose you money.