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Read moreIn trading the financial markets, technical analysis is a method for analyzing price action on a chart to forecast the probability of the future direction of the trend. Technical analysts use charts and the patterns of price data and volume to find key levels of support and resistance along with the path of least direction for buyers and sellers. Much of the behavior of market participants can be explained by behavioral economics and quantitative analysis which have a lot in common with technical analysis.
There are two major schools of technical analysis, one tries to predict the future through current chart patterns, this is predictive technical analysis. The other is reactive technical analysis where buy and sell signals are created based on backtesting, risk/reward ratios through trade management, and principles for capturing trends. One type of technical analysis tries to predict what will happen and the other reacts to what is happening.
Here is a list of ten of the best books on technical analysis for traders that want to learn all the key concepts, principles, and indicators for analyzing and trading price action.
Source: newtraderu.com