Technical analysts believe that all relevant information about an asset, including fundamental factors and market psychology, is already reflected in its price. They focus on studying price patterns and trends to make trading decisions.

Technical analysis is based on the assumption that market behavior repeats over time. By studying past price patterns and market trends, analysts try to identify similar patterns that may indicate future price movements.

Technical analysts analyze price charts to identify trends, such as uptrends (higher highs and higher lows) or downtrends (lower highs and lower lows). They believe that trends are more likely to continue than to reverse abruptly.

Support levels are price levels where buying pressure is expected to be strong enough to prevent further price declines. Resistance levels are price levels where selling pressure is expected to be strong enough to prevent further price increases. Traders use these levels to identify potential entry and exit points.

Technical analysts look for specific chart patterns that may indicate trend reversals or continuation. Examples include head and shoulders, double tops/bottoms, triangles, and flags. These patterns are believed to provide insights into future price movements.

Technical analysts use various mathematical calculations and statistical tools known as indicators to derive additional information from price data. Examples of indicators include moving averages, oscillators (such as RSI and MACD), and Bollinger Bands. These indicators help identify overbought or oversold conditions, trend strength, and potential reversal points.

Technical analysis can be applied to different time frames, such as short-term (intraday), medium-term (swing trading), or long-term (position trading). Traders choose their time frames based on their trading strategies and goals.