Technical analysis is primarily based on which kinds of inputs?

Technical analysis is primarily focused on market behavior and price movements rather than fundamentals. It relies on historical price data and trading volume to identify patterns, trends, and signals that can inform investment decisions.

Price is a critical input because it reflects the actual trading activity and market sentiment at any given time. Volume indicates the number of shares or contracts traded, which helps assess the strength or weakness of a price movement—higher volume can confirm trends. Volatility measures the rate at which the price of an asset increases or decreases, providing insights into risk and potential price movements over time.

In contrast, other choices involve fundamental analysis aspects or factors that are not directly tied to price patterns. Corporate earnings and management changes relate to fundamental metrics that assess a company's financial health, while economic indicators and government policies can influence broader market conditions but are outside the purview of technical analysis. Investor sentiment and news reports can indeed impact market behavior but are used more in conjunction with technical analysis rather than as direct inputs, which solidifies the reasoning for price, volume, and volatility being the primary focus in technical analysis.