As we have already said, the technical analysis studies the price behavior in the history of any instrument to try to determine or predict its future behavior.

By studying the price behavior and technical analysis, we are actually studying the behavior of all operators in a certain market. All investors and operators are behind every price movement, after all, they were the ones who took the price to a certain level (through purchases and sales of the instrument). 
The price moves based on the expectations that operators and investors have of what the future value of the instruments should be. Most of the time investors and operators are driven by their emotions (fear, greed, etc.) These emotions they are visible in the graphs through patterns of repetitive behavior.
The result or future behavior of these patterns is what the technical analysis tries to predict.

THE TECHNICAL ANALYSIS IS BASED ON THE DOW THEORY, WHICH HAS THREE PRINCIPLES:

THE PRICE DISCOUNTS EVERYTHING

-This means that all the information that investors and operators have about the instrument is reflected in the price. It reflects all the knowledge of everyone involved (including that of the fundamentalists).

THE PRICE BEHAVIOR IS NOT RANDOM

-The prices move in trends, although there are certain periods where you can not distinguish or act almost randomly. The job of technical analysts is to determine the periods in which there is a trend and make a profit from it.

THE QUESTION “WHAT” IS MORE IMPORTANT THAN “WHY”

– “What” refers to what is your historical behavior and where is the price. The question “Why” is the price where it is or “why” will it have a certain behavior? It is not of interest to technical analysts, this is the area of ​​fundamental analysts: look for reasons why the price is at a certain level.