What is the primary objective of Technical Analysis (TA) in the stock market?

To identify long-term investment opportunities based on company fundamentals To predict the exact future price movements of stocks with certainty To develop a perspective on a stock or index, including entry and exit points, based on market participant actions To analyze a company's financial statements and economic moat

How does Technical Analysis (TA) differ from Fundamental Analysis (FA) in approaching the stock market?

TA focuses on short-term trading opportunities, while FA emphasizes long-term investment potential TA relies solely on quantitative data, while FA incorporates qualitative factors TA is suitable for beginners, while FA is more complex and requires advanced knowledge TA is based on predicting future events, while FA analyzes past performance

What is the underlying principle behind Technical Analysis (TA)?

Market psychology and crowd behavior influence stock prices Company fundamentals and intrinsic value determine stock prices Economic indicators and news events drive stock market trends Random walk theory suggests stock prices are unpredictable

What is a key assumption of Technical Analysis (TA)?

Historical price patterns and trends tend to repeat themselves Stock prices always reflect the true value of a company Market efficiency ensures all information is already priced into stocks Fundamental analysis is superior to technical analysis

How can Technical Analysis (TA) be used effectively by investors?

To identify short-term trading opportunities and potential entry and exit points To make long-term investment decisions based on company fundamentals To predict the exact timing and magnitude of market movements To eliminate all risks associated with stock market investing