Technical analysis is the process in which traders analyze price movement. A person can look at historical price movements and determine the current trading conditions. History tends to repeat itself , that's basically what technical analysis is all about! If a price level held as a key support or resistance in the past, traders will keep an eye out for it and base their trades around that historical price level. In the world of trading, when someone says technical analysis, the first thing that comes to mind is a chart.