The technical analysis is the method to act on the market without emotions, based only on the evolution of the market in the past. With this method one tries to determine how the market will behave in the future, only with the help of its previous movements. Only measurable factors are taken into account, including previous price levels, volumes, fluctuations and volatility. The fact that there are people behind it is ignored, and instead a more scientific and objective process comes to the fore. Quite apart from the fact that a large part of trading is carried out by programmed algorithms anyway.
This analysis is based on some assumptions about the market. The main assumption is that events that have already taken place will inevitably repeat themselves in the future. This could mean that certain price levels will be reached again, or that a similar model or trend will be repeated in one form or another. In any case, this is an all-encompassing assumption that repetition is often seen in the market because its main principles are the same even if they occur in different circumstances. Technical analysts consider the market as an effective mechanism, and therefore consider it predictable. They assume that the variables containing buying and selling are included in the current price at all times. Then they take this price as evidence of the movement that develops.