Technical analysis is a series of analysis methodologies for predicting the price direction of the markets by studying charts and by using markets statistics. These methodologies provide buy and sell decisions.
Technical analysts use mostly two categories of methodologies: technical indicators and price action. Technical indicators are mathematical formulas that contain past data (price, volume etc). Price action refers to the research of the current price regarding past prices and to the research of some patterns on a chart that statistically may produce buy or sell signals.