Technical analysis is a method of evaluating securities using statistical analysis of past market data like price and volume. It is used to identify patterns that can predict future price movements. Technical analysis uses tools like charts, indicators, and computer programs to analyze trends and identify trading opportunities. While technical analysis is widely used by traders, academics are divided on its effectiveness, with some studies supporting it and others finding the evidence inconclusive or inconsistent with market efficiency. Technical analysis is commonly used over shorter time frames by day traders, short-term investors, and hedgers seeking to manage risk.

1. REPORT ON TECHNICAL ANALYSIS<br /> GROUP MEMBERS<br />NITA CHANGANI

2. VIJAY POPAT

3. WASIM AHMED

4. RAHUL AGARWALLA

5. RACHNA JAIN

6. SONAM JAISWALBENCHMARKERS<br />TECHNICAL ANALYSIS<br />Technical analysis is a security analysis discipline for forecasting the future direction of prices through the study of past market data, primarily price and volume. Technical analysis and fundamental analysis are the two main schools of thought in the financial markets. <br />Technical analysis looks at the price movement of a security and uses this data to predict its future price movements. <br />Fundamental analysis, on the other hand, looks at economic factors, known as fundamentals. Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. <br />Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. It uses charts and computer programs to study the stock’s trading volume and price movements in the hope of identifying a trend. In fact the decision made on the basis of technical analysis is done only after inferring a trend and judging the future movement of the stock on the basis of the trend.<br /> Technical Analysis assumes that the market is efficient and the price has already taken into consideration the other factors related to the company and the industry. It is because of this assumption that many think technical analysis is a tool, which is effective for short-term investing.<br />HISTORY OF TECHNICAL ANALYSIS<br />The principles of technical analysis derive from the observation of financial markets over hundreds of years. The oldest known hints of technical analysis appear in Joseph de la Vega's accounts of the Dutch markets in the 17th century. In Asia, the oldest example of technical analysis is thought to be a method developed by Homma Munehisa during early 18th century which evolved into the use of candlestick techniques, and is today a main charting tool.<br />Dow Theory is based on the collected writings of Dow Jones co-founder and Editor Charles Dow, and inspired the use and development of modern technical analysis from the end of the 19th century. Other pioneers of analysis techniques include Ralph Nelson Elliott and William Delbert Gann who developed their respective techniques in the early 20th century.<br />Many more technical tools and theories have been developed and enhanced in recent decades, with an increasing emphasis on computer-assisted techniques. Walter Deemer was one of the technical analysts of that time. He started at Merrill Lynch in New York as a member of Bob Farrell's department. Then when the legendary Gerry Tsai moved from Fidelity to found the Manhattan Fund in 1966, Deemer joined him. Tsai used to consult him before every major block trade, at the start of a time when large volume institutional trading became the norm and the meal ticket for brokers. Deemer, could recreate market history on his charts and cite statistics. He maintained contact with the group of other<br /> pros around then, who shared their insights with each other in a collegial confidence worthy of the priesthood. Other pioneers of analysis techniques include Ralph Nelson Elliott and William Delbert Gann who developed their respective techniques in the early 20th century.<br />CHARACTERISTICS<br />Technical analysis employs models and trading rules based on price and volume transformations, such as the relative strength index, moving averages, regressions, inter-market and intra-market price correlations, cycles or, classically, through recognition of chart patterns.