Technical Analysis (TA) is a methodology to forecast the direction of prices through the study of historical price and volume data. It tries to identify patterns and trends in financial markets and attempts to exploit those patterns to make (abnormal) profits and returns. TA is commonly used for (Day) Trading and Algorithmic Trading.
Technical analysis is about price action, we analyze the candlestick to forecast the movement of next candlestick. There are a lot of candlestick pattern like Morning Star, Hammer, Tweezer Bottom, Harami, Engulfing, etc.
Technical analysis is related to trader psychology, namely when traders take profits or cut loses. Because of this, there are repeating patterns in the market. These repeating patterns become an indicator on how market will behave.
Price discounts everything
Technical analysts believe that the current price fully reflects all information. Because all information is already reflected in the price, it represents the fair value, and should form the basis for analysis. After all, the market price reflects the sum knowledge of all participants, including traders, stock market technical analysis utilizes the information captured by the price to interpret what the market is saying with the purpose of forming a view on the future.