InvestmentFinancial Glossary
Technical Analysis
Definition
A method of evaluating securities by analyzing price charts, trading volumes, and statistical indicators to identify patterns and predict future price movements. Tools include moving averages, RSI (Relative Strength Index), MACD, Bollinger Bands, and candlestick patterns.
Why It Matters
Technical analysis is most useful for short-term trading and timing entry/exit points. For long-term investors using SIPs, technical analysis is largely irrelevant — rupee-cost averaging handles timing automatically. If you are drawn to trading, understand that 90%+ of retail traders in India lose money, as per SEBI studies.