DEFINITION OF ‘TECHNICAL ANALYSIS’
A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.
We agree with most of Investopedia’s definition of technical analysis except the last part that talks about trying to predict future activity. No one can predict future activity. In our system we do not expect a loss or a gain we just take what the market gives us.