TECHNICAL ANALYSIS

Technical analysis is the process of analyzing a market's historical prices in an effort to determine probable future prices. This is done by comparing current price action (i.e., current expectations) with comparable historical price action to predict a reasonable outcome. If we accept the fact that human emotions and expectations play a role in market pricing, we should also admit that our emotions play a role in our decision making. Many investors try to remove their emotions from their markets by using computers to make decisions for them. Technical analysts are sometimes referred to as chartists because they rely almost exclusively on charts to look into the history for their analysis.
On looking to a chart we get a clear picture on "over all trend, support, resistance etc. And by using tools like momentum, volume (buying/Selling pressure), relative strength index, moving average and many studies like these, one can see the approximate future direction. To further strengthen the view some effective mathematical calculations are used, like Fibonacci numbers, Elliot wave count and Gann analysis etc. This entire process of technical analysis is one of the best analyzing methods to know the future prices.