Technical analysis is an art to study the prices of securities with charts. It is a process of analyzing historical prices in an effort to determine probable future prices. Technical analysis assumes that the market discounts everything and stock prices reflect everything at any given time.

The practitioners of technical analysis believe that the future can be found in the past or history repeating itself. This is done by comparing current price action (current expectations) with comparable historical price action to predict a reasonable outcome.

The price of a security represents a consensus. Investors will buy stocks when they expect that the prices will rise; they will sell stocks when they expect prices will fall. This creates a major challenge in forecasting because they refer to human expectations. Therefore, a good understanding of crowd behavior is very important as humans are not easily predictable.

Knowledge of interpreting charts will help to understand market psychology. Chart patterns and technical tools when used judiciously their value cannot be overstated. When you apply these tools, you are calculating a consensus of bullishness or bearishness among all market participants.

In this course, we have taken into consideration of all common patterns and tools which are helpful in taking a buy or sell decision while analyzing a chart.