ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In technical analysis, trends are identified by trendlines or price action that highlight when the price is making higher swing highs and higher swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend.

Detailed explanation-2: -Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts. Technical analysts believe past trading activity and price changes of a security can be valuable indicators of the security’s future price movements.

Detailed explanation-3: -Technical analysis seeks to predict price movements by examining historical data, mainly price and volume. It helps traders and investors navigate the gap between intrinsic value and market price by leveraging techniques like statistical analysis and behavioral economics.

Detailed explanation-4: -Technical analysis is a trading technique that investors use to discover new investment opportunities. For example, to predict future price movements of stocks or other assets, past price and volume data is analyzed and presented on graphic charts, where one can identify trends, patterns, and technical indicators.