Technical Analysis is the study of charts, historical prices and patterns to determine the potential future price movement of an underlying asset.

Technical Analysis usually focuses on movement of price and technical indicators. Everything including strength of price trends, current and future trends as well as the non-movement of prices can be measured with the help of charts. These charts are a quick way of analysing trends and market conditions. With the growth of the modern real-time interactive charting software, technical indicators that were once available only to brokers and professional traders are now available to any trader with a computer.

Unlike fundamental analysis, technical analysis relies solely on the use of charts and mathematical techniques to examine various aspects of price movement.

For short term traders, having a sound knowledge of technical analysis is a big bonus. Technical analysis can help you get those eye-popping returns. Nonetheless, trading is about finding an Edge. Hence, always equip Technical Analysis with sound Risk Management. This is good damage control and will ensure that even if you are wrong at that point of time, you have the resources to make a new entry.