In contrast to the fundamental analysis that considers financial data,the technical analysis analyses diagrems based on past bata. More specifically,in accepts the follwing:
The market is efficient (all information is incorporated into the prices)
The prices are moved by trend.
The history repeats itself.
The technical analysis takes into consideration indicators,such as moving averages and oscillators,the volume of transactions,trend lines,and time or price fliters,and it combines their trend according to some charting rules Then in turn thr technical analysis tries to identify the future price and anticipate the price patterns in the financial and commodity markets.
The applied chartist techniques,either on bar charts or on candlestick charts,lead to more reliable forecasts when dealind with short-term periods.