REFERENCES

Technical analysis is a financial markets technique that claims the ability to forecast the future direction of security prices through the study of past market data, primarily price and volume. In its purest form, technical analysis considers only the actual price and volume behavior of the market or instrument, on the assumption that price and volume are the two most relevant factors in determining the future direction and behavior of a particular stock or market. Technical analysts may employ models and trading rules based, for example, on price and volume transformations, such as the relative strength index, moving averages, inter-market and intra-market price correlations, cycles or, classically, through recognition of chart patterns.

However Critics of technical analysis include well known fundamental analysts. For example, Peter Lynch once commented, "Charts are great for predicting the past." Warren Buffett has said, "I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer" and "If past history was all there was to the game, the richest people would be librarians."

Thus we can say that Technical Analysis has its own Pros and Cons. However if implemented accurately it can serve a great benefit. 

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