Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts use charts and other tools to identify patterns and trends that may suggest future price movements. They believe that historical price movements and trends can provide clues about the direction of future prices, and that these patterns can be used to make trading decisions. Technical analysis is often used in conjunction with fundamental analysis, which focuses on the underlying financial and economic factors that influence the value of a security.