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Technical analysis

Reading price and volume patterns to time trades. Professional long/short investors mostly use it to time ideas that come from fundamentals.

Technical analysis studies charts: trends, moving averages, momentum oscillators such as RSI and MACD, support and resistance levels, and volume.

Fundamental analysis asks what something is worth; technical analysis asks when the market is likely to move towards it.

Why it matters

Many professional processes are mostly fundamental (the economy, earnings, valuation) with a smaller technical overlay for timing entries and exits and setting stop levels.

General information, not advice.