The forecasting of future financial price directions based on the study of past price movement is known as Technical Analysis.
Although it does not provide an absolute 100% prediction about the future, it anticipates what is probably going to happen to price over time.
Technical Analysis use charting tools to describe and project future price movement on a variety of trading instruments like stocks, forex, indices, ETFs and commodities.
With proper training and discipline traders can increase their probability of having greater winning trades and their profitability.
Successful traders plan ahead and follow their plans without emotions. They take profit when the signals alert them and cut losses early when price fails predetermine levels.
