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The primary focus of technical analysis is on price movements and trading volumes. This approach evaluates historical data to identify patterns and trends that traders can use to predict future price movements. Technical analysts believe that all relevant information is already reflected in the stock price, and therefore their analysis centers around charts and indicators that track price trends and trading volumes over time.

By examining price action and volume data, technical analysts aim to gauge market sentiment and make trading decisions based on the assumption that trends and patterns may repeat themselves. This contrasts sharply with other analytical approaches, such as fundamental analysis, which centers on the intrinsic value of securities based on financial metrics and economic indicators. While factors such as macroeconomic conditions and regulatory changes can influence market behavior, they are not the core focus of technical analysis.