Technical analysis studies price and volume data to forecast future price movements and identify trading opportunities. Where fundamental analysis asks "what is the business worth?", technical analysis asks "what is the price likely to do next, based on what it has done before?"
It is used by equity traders, commodity traders, forex traders, and increasingly by mutual fund managers to time entries and exits on positions that fundamental analysis has identified.
The key building blocks: trend identification (is the price in an uptrend, downtrend or sideways range?), support and resistance levels (where does price tend to stop and reverse?), chart patterns (head and shoulders, double tops, flags, triangles), moving averages (SMA, EMA) and oscillators (RSI, MACD, Stochastic).
A realistic context note: technical analysis is most systematically used in professional trading desks, FnO (Futures and Options) trading, and by active retail traders. Long-term buy-and-hold investors use it less or not at all. Its value is highest in liquid markets with high transaction volumes. The NSE has one of the world's highest FnO volumes, making India a particularly active market for TA practitioners.
The qualification dimension: the CMT (Chartered Market Technician) designation from the CMT Association is the professional credential in technical analysis. The NISM Securities Markets certifications include elements of technical analysis and are mandatory for certain SEBI-registered roles.
Source context: NSE FnO market volumes; CMT Association curriculum framework.