A Review of Technical Analysis as a Tool for Stock Market Forecasting

Abstract

Technical analysis is a fundamental analysis that uses historical price charts and various other factors to predict future price movements in the markets. Technical analysis is a type of market analysis that is focused on the price charts of an asset. Unlike fundamental analysis, it focuses on the intrinsic value of an investment. Analyzing a company's balance sheet, profit, and loss account, and cash flow statement is an effective way to evaluate its financial performance, but sometimes it is very time-consuming and not practical for a brief period. Thus most short-term traders rely on Technical Analysis as a tool for stock market trading. This study focus on a review of various recent researches about technical analysis and its applications. This study also extends the multiple assumptions and their validity on which technical analysis.