Technical analysis is a method of analysis that relies on mathematical calculations which helps predicting future monetary actions using past actions. Future direction of monetary actions is predicted by graphics that reflects past term actions and mathematical indications. Technical analysis method predicts that future term prices will act as the past term actions did. Prediction of future term market state has an important role in developing operation strategies for investors in financial markets. Relying on the technical analysis predictions investors determine on when to start the operation and the capacity of the operation. Predictions on price changes help market investor to take strong decisions before starting the operation. Technical analysis method focuses on price and indicator actions that happened in the past rather than basic data circulation. Technical analysts think that basic data circulation and news are reflected in the prices. The thing that differentiates technical analysis is that it can both predict the direction of change and determine the trend. Technical analysis is not an alternative of the fundamental analysis but they’re two types of analysis that complete each other. In most of the discussion platforms, Technical Analysis and Fundamental Analysis are mistaken for each other and there are discussion on their superiorities and defects but it would be right to say that they complete each other. In accordance with the fact, in some academic sources it is suggested that fundamental analysis should be used when deciding on the direction of the market and the investment while technical analysis should be used when finding the starting points of the operation. Nevertheless it is not totally wrong to use technical analysis when operating. Moreover there are investors who want to assess their money without any economic knowledge can decide on their own strategies by just producing outcomes from relations of different methods of technical analysis.This method is seen as the most basic method of analysis for investors without economic knowledge.
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