Technical analysis is a method used to evaluate securities and make investment decisions based on historical price and volume patterns. It utilises charts and other technical indicators to forecast future price movements. This approach is popular among traders and investors as it aims to identify trends and patterns that can help predict the direction of financial markets. Understanding technical analysis is crucial for anyone looking to participate in the stock market, as it provides valuable insights into market sentiment and potential price movements.

One of the main reasons to study technical analysis is its focus on market psychology and supply and demand dynamics. By studying price trends and patterns, investors can gain a deeper understanding of how market participants perceive the value of a security. This can help in making informed decisions about buying or selling stocks. Technical analysis also equips traders with tools to manage risk by identifying key support and resistance levels, as well as potential entry and exit points.