Technical analysis is based on the assumption that all information that can affect the performance of a share such as,
company fundamentals, economic factors, and market sentiments are reflected in the stock prices. it is focused on
forecasting the direction of prices through the study of patterns in historical market data - price and volume.
Technicians (sometimes called chartists) believe that market activity will generate indicators in price trends that can
be used to forecast the direction and magnitude of stock price movements in future.

Technical Analysis is a specialized stream in itself and involves study of various trends- upwards, downwards or
sideways, so that traders can benefit by trading in line with the trend. Identifying support and resistance levels, which
represent points at which there is a lot of buying and selling interest respectively, and the implications on the price if
a support and resistance level is broken, are important conclusions that are drawn from past price movements.
According to technical analysis, there are three essential elements in understanding the price behaviour:

• The history of past prices provides indications of the underlying trend and its direction.
• The volume of trading that accompanies price movements provides important inputs on the underlying strength of
  the trend.
• The time span over which price and volume are observed factors in the impact of long term factors that influence
  prices over a period of time.