The type of investment analysis that focuses on historical returns and price changes to chart patterns for estimating future price movements of securities and the broader market is called Technical Analysis. Technical analysis involves studying past price trends, volume data, and chart patterns such as head and shoulders, double tops and bottoms, and triangles to identify trends and predict future price directions. It is based on the principle that market behavior patterns tend to repeat over time, allowing analysts to forecast price movements by recognizing these recurring patterns on price charts. This approach contrasts with fundamental analysis, which evaluates a company's financial health and economic factors rather than price history
. In summary, technical analysis uses historical price and volume data to identify patterns that can signal potential future price movements, helping investors and traders make decisions about buying or selling securities
