Technical analysis of stocks Technical analysis is similar to simulation technique. Here, we make the analysis of the past data and on the basis of this analysis, we’ll forecast the price movement. Technical analysis can be used in the equity market, derivative market, commodity market, etc where the theory of supply and demand works. Technical analysis only talks about the trend and patterns. It ignores the other factors like economic growth, monetary policies, interest rates, etc. Technical analysis involves analysis of a lot of charts, patterns, trend lines and other various indicators. In layman terms, it is just the identification of patterns in the market and following the trend in order to earn a good return. It is a scientific method that is based on a number of significant assumptions. Some of the major assumptions are : History always repeats . The trend of stocks always tends to repeat. The behavior of an investor or trader in most of ...