From the course: Cert Prep: CFA Exam Level 1

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Technical analysis

Technical analysis

From the course: Cert Prep: CFA Exam Level 1

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Technical analysis

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- [Instructor] Another major topic you need to be familiar with for the CFA exam is technical analysis. This is a method of evaluating securities by analyzing price charts, trading volume, and market behavior. Unlike fundamental analysis, which focuses on financial statements, technical analysis studies patterns in market activity to make investment decisions. Now, technical analysis assumes that all known information is already reflected in prices. So instead of studying balance sheets or income statements, it focuses on how prices move, identifying trends, reversals, and support or resistance levels. Technical analysis is sometimes poorly regarded by some in the investment community who prefer to focus on fundamental analysis, but it's still an important part of the CFA exam. And that means regardless of your personal opinions on it, if you have any, of course, you still need to know it. Now, there's several key…

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