Technical analysis

Technical analysis studies price, volume and market structure. Its purpose is not to make the future certain, but to organise evidence about trend, momentum, participation and the behaviour of buyers and sellers.

Trend

An uptrend is commonly described by rising prices and higher swing points; a downtrend shows the opposite. Analysts also use moving averages and relative performance to add context.

Momentum

Momentum asks how strongly price is moving and whether that strength is accelerating or fading. A rapid move can be important, but it can also become extended, so direction and entry timing are different questions.

Relative strength

Relative strength compares one asset with a benchmark or peer group. A company can fall in absolute terms while still showing relative strength if it falls much less than its benchmark.

Price and volume together

Volume can help describe participation. Breakouts, reversals and trend changes are often studied alongside volume because price movement backed by broader participation may carry different information from thin trading.

Technical analysis is evidence about behaviour, not a guarantee. Good analysis states what would invalidate the interpretation.