Technical analysis or more commonly known as TA is actually nothing more than probability studies used in mathematics.
In all types of trading, we as traders are concerned about the occurrence of certain events. Plainly said, we want to buy low sell high. Which means that we will look for that : "edge" which will give to us the ability to consistently make profits in our trading.
TA are a group of studies to help maintain and create that edge. Of course it is not the whole pie, but TA is a very large portion of that pie!
Some of the more common forms of TA are (1) averages (moving, exponential, simple). They can be used for a variety of strategies as well as help the trader spot entry and exit positions. Most commonly they are used for trend studies.
Price points, or pivot points, bollinger bands and fibonacci. These basically tell you about the support and resistance levels of the investment.
There is a lot of TA that you can use, and using TA correctly can make your trading a lot easier.
When you trade, focus on using TA that complement each other and help you spot entry and exit positions.
This will ensure that your trade has a good edge to capitalize on market movement. There are times that TA cannot help you, but I can say then you are most likely using the wrong indicator.
For short-term traders, or long term traders, using TA as part of your trading strategy can help you ascertain the type of trade you wish to enter. Of course that also means that you will have to use fundamental studies to qualify your trades, but TA will help you make buy/sell decisions.
TA have become the staple for many traders these days, so use it wisely to your advantage.