Home » Eng Accounting » T » Technical analysis

Technical analysis

The use of past information on security prices to predict future security prices, often by using charts to reveal patterns in prices. Market practitioners who use technical analysis are sometimes referred to as chartists. Despite its use being fairly common, technical analysis has limited empirical justification; the patterns that have been found cannot be exploited profitably once trading costs are taken into account. See also efficient markets hypothesis.

Reference: Oxford Press Dictonary of Economics, 5th edt.