Technical analysis is one technique used for analyzing the performance of markets and stock picks, (and other areas of business), by analyzing key trends and data. Most often, the variants analyzed are pricing, volume and time scale, though many other factors can be taken into the equation. A lot of the studies are completed through charts, and have since given rise to analysts being dubbed "chartists".

However, whilst it sounds an acceptable technique; many actively and loudly argue against it. They claim there is no strength to the theory behind it. Those for it argue the opposite; and suggest that results generated are proof of it working.

However, countering this view are those that question why it has not led to a robust automatic trading system, however, this would of course negate the human analytical mind so often falls flat as an argument.

However, other arguments exist of course; most commonly how to prove that technical analysis was the reason for success. Chartists counter this by providing back testing evidence, tough this is often dismissed as nothing more than conjuncture.

The basic argument for those supporting the technique, is that it just makes sense to study past performance, pricing trends, and any areas where upon a variant and a constant can be linked. Trends in the markets do occur regularly; this is just an accepted fact; understanding where these trends are going to recur is merely applying a technique.

Advocates of the system, and objectors to it, do seem to come together in some sort of agreement however. Whilst both have very differing views, both state that technical analysis should be used not as standalone technique, but more just one of several weapons to understand fluctuations in the market and apply strategy effectively.

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