Editing Technical analysis (section)

{{Short description|Security analysis methodology}}
{{Use dmy dates|date=September 2021}}

{{Financial markets}} 

In finance, '''technical analysis''' is an [[analysis]] methodology for analysing and forecasting the direction of [[prices]] through the study of past market data, primarily price and volume.<ref name="Kirkpatrick_3">{{harvp|Kirkpatrick|Dahlquist|2006|p=3}}</ref> As a type of [[active management]], it stands in contradiction to much of [[modern portfolio theory]]. The efficacy of technical analysis is disputed by the [[efficient-market hypothesis]], which states that stock market prices are essentially unpredictable,<ref>{{cite book|title=The Evolution of Technical Analysis: Financial Prediction from Babylonian Tablets to Bloomberg Terminals|year=2010|publisher=[[Bloomberg Press]]|isbn=978-1576603499|page=150|url=https://books.google.com/books?id=HMR_YTo3l2AC|author=Andrew W. Lo|author2=Jasmina Hasanhodzic |access-date=8 August 2011}}</ref> and research on whether technical analysis offers any benefit has produced mixed results.<ref name=SurveysReview/><ref name="Osler">Osler, Karen (July 2000). "Support for Resistance: Technical Analysis and Intraday Exchange Rates," FRBNY Economic Policy Review ([http://www.ny.frb.org/research/epr/00v06n2/0007osle.html abstract and paper here]).</ref><ref name=Foundations /> It is distinguished from [[fundamental analysis]], which considers a company's financial statements, health, and the overall state of the market and economy.