In its simplest sense, technical analysis seeks for order, rhythm and trends in the price behavior of a security and completely overlooks the fundamentals. It presumes that the security’s price is always founded on the market’s sensitivity to every information relevant to it, whether it the yearly outcomes, earnings, profit margins, or even merger reports.
Trends can be determined in stocks or financial markets, although it also works in other sectors, such as real estate, or the supply and demand of services.
Looking at their history, one can appreciate that many technical approaches have produced many very lucrative results. Hindsight always has 20-20 vision, as they say. One can clearly see a pattern/design, except that it can happen only once in every 100 patterns. Hence, if 100 varying patterns within a daily chart span across a decade, you end up selecting one every 10 years.