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Technical analysis

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One school of thought used when attempting to predict future trends in the stockmarket.

Technical analysis is based on the efficient market hypothesis. This theorizes that all participants in the stock market have equal and instantaneous access to all the information about stocks. Therefore, there is no need to analyze this information, since many other market participants are already doing so. Instead, adherants to this school merely analyze the graphs of the stock price history, trying to see patterns with past events.

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