Technical Analysis

Technical analysts study different securities' price movements and trading volumes in an attempt to make judgments about future performance. One statistic that technical analysts focus on is the stock's beta, or measure of volatility in comparison with the market as a whole.

They also look at stocks' historical performance and how prices moved in reaction to past economic events. While past performance is not an indication of future results, technical analysts use historical information to make estimations about how they believe the security may react to similar events were they to happen in the future.

Technical analysts study individual stocks, mutual funds, commodities, or options in specific market sectors or the overall marketplace.