Technical analysis is a method used to evaluate and predict the future price movements of financial assets, such as stocks or currencies. It relies on historical price data and trading volume, using charts and various indicators to identify patterns and trends. Traders believe that past price movements can provide insights into future behavior. By analyzing these patterns, traders aim to make informed decisions about when to buy or sell an asset. Technical analysts often use tools like moving averages, relative strength index (RSI), and candlestick charts to help interpret market conditions and potential price changes.