Question

Jessica has been following the market for years and has found a way to routinely beat the market. She tracks stock prices and looks at the volume traded and has found patterns that she can profit from. This implies that:

Answer 1

It means that the Jessica is Doing Technical Analysis

Technical analysis refers to the investing in the stock by looking its stock price, volume and trend of the stock. In technical analyses, data is analysed of the stock for a period of time. The Volume and price analyses helps to gather whether there is selling pressure or buying pressure which can lead to stock price movements and support and resistance level is analysed from the chart to verify when the stock will move upwards and downwards.

Unlike Fundamental analysis which relies more on company's performance like Revenue, operating expense, and capital structure of the company, Technical analyses only focus on volume and trends to identify trading opportunities.