Technical analysis involves using historical price data, chart patterns, and various technical indicators to predict future price movements. Traders who rely on technical analysis believe that price action reflects all available information and that history tends to repeat itself. 

At the core of technical analysis is chart reading. Traders use different types of charts, such as candlestick, bar, and line charts, to visualize price movements over time. They look for patterns like head and shoulders, double tops, and triangles, which can signal potential market reversals or continuations. These patterns give insight into market psychology, showing where buyers and sellers are positioned. 

Indicators like moving averages, RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence) provide additional information about the market's momentum, strength, and potential overbought or oversold conditions. For example, an RSI value above 70 might suggest that the market is overbought and could be due for a correction, while an RSI below 30 might indicate oversold conditions and a possible upward move. 

Technical analysis also includes the study of support and resistance levels, where traders identify key price zones that the market has had trouble moving beyond in the past. Breakouts above resistance or breakdowns below support can trigger significant price movements. 

Traders who use technical analysis often rely on a combination of these tools to make informed decisions, with the goal of predicting market trends and finding optimal entry and exit points.