In finance, technical analysis is an analysis methodology for forecasting the direction of prices through the study of past market data, primarily price and volume.TechnicalanalysisFromWikipedia,thefreeencyclopediaJumptonavigationJumptosearchSecurityanalysismethodologyInfinance,technicalanalysisisananalysismethodologyforforecastingthedirectionofpricesthroughthestudyofpastmarketdata,primarilypriceandvolume.[1]Behavioraleconomicsandquantitativeanalysisusemanyofthesametoolsoftechnicalanalysis,[2][3][4]which,beinganaspectofactivemanagement,standsincontradictiontomuchofmodernportfoliotheory.Theefficacyofbothtechnicalandfundamentalanalysisisdisputedbytheefficient-markethypothesis,whichstatesthatstockmarketpricesareessentiallyunpredictable,[5]andresearchonwhethertechnicalanalysisoffersanybenefithasproducedmixedresults.[6][7][8]Assuchithasbeendescribedbymanyacademicsaspseudoscience.[9]Contents1History2Generaldescription3Characteristics4Principles4.1Marketactiondiscountseverything4.2Pricesmoveintrends4.3Historytendstorepeatitself5Industry5.1Software6Systematictrading6.1Neuralnetworks6.2Backtesting7Combinationwithothermarketforecastmethods8Empiricalevidence8.1Efficient-markethypothesis8.1.1Randomwalkhypothesis9Scientifictechnicalanalysis10Ticker-tapereading11Quotationboard12Chartingtermsandindicators12.1Concepts12.2Typesofcharts12.3Overlays12.4Breadthindicators12.5Price-basedindicators12.6Volume-basedindicators12.7TradingwithMixingIndicators13Seealso14References15Bibliography16Furtherreading17ExternallinksHistory[edit]Theprinciplesoftechnicalanalysisarederivedfromhundredsofyearsoffinancialmarketdata.[10]SomeaspectsoftechnicalanalysisbegantoappearinAmsterdam-basedmerchantJosephdelaVega'saccountsoftheDutchfinancialmarketsinthe17thcentury.InAsia,technicalanalysisissaidtobeamethoddevelopedbyHommaMunehisaduringtheearly18thcenturywhichevolvedintotheuseofcandlesticktechniques,andistodayatechnicalanalysischartingtool.[11][12]JournalistCharlesDow(1851-1902)compiledandcloselyanalyzedAm