Technical analysis process?

<p>Technical analysis, generally, focuses on price, movement, volume and trends, there are several basic aspects and charts that technical analysts look at rather than things like financial statements, which fundamental analysts look at.</p><ol style="list-style-type: lower-roman;margin-left:80px;"><li><p>One of the biggest factors technical analysts examine is the price of the security. In fact, price action is the primary measure considered when conducting technical analysis. Traders analyse by examining charts that show a security's price and trading volume to note its historical performance and help predict future movements.&nbsp;</p></li><li><p>Chart patterns are one of the main ways analysts examine and predict where a stock or security will trade&nbsp;down the road. One of the most important parts of charts for technical analysis is a so-called "trend line," which shows a security's overall price trend. Additionally, things like "peak/trough analysis" and "moving averages" can help investors or analysts get a better prediction of what stocks are going to do.</p></li><li><p>Volume is simply the number of shares or contracts that trade for a certain security over a certain period of time, which is generally one day. Volume is expressed as a bar chart at the bottom of a financial chart below the price line. The higher the bar, the higher the trading volume.&nbsp;</p></li><li><p>Trend is perhaps one of the most important indicators of a stock or security's future performance. Technical analysis prizes examining historical trends to forecast what a stock's price might do in the future. For this reason, human behavior and emotions play a surprisingly key role in technical analysis, as patterns of trading and price movements from the past often indicate how the stock or security might behave in the future.&nbsp;</p></li><li><p>Momentum measures the speed of the price changes or movements of a particular stock or security. Often coupled with the so-called "relative strength index" (RSI), momentum tracks and measures the rate of price increases or decreases over a set period of time.</p></li><li><p>Technical analysts will also examine the stock's "support" and "resistance" levels. Those are the security's previous lows (support) and highs (resistance) that are above or below the stock's current price. These can help indicate if a stock is on a bullish or bearish trend.</p></li><li><p>Moving averages, also helps in reducing the confusion created by the jagged lines moving up and down. The average of a stock's past price movements -- can help show trends more clearly. These focus on a security's average price movements instead of its day-to-day changes.</p></li><li><p>Apart from just resistance or support levels, technical analysts also examine some key indicators like "money flow," "volatility," "momentum" and more to get a mathematical view of the stock or other security. Indicators are calculations based on statistics like price and volume that help confirm chart patterns and other trends. They're designed to create buy or sell "signals" that help traders or analysts determine where to best enter or exit a trade.</p></li></ol>