Which type of analysis focuses on price movements and trading volumes?

Technical analysis is centered around examining price movements and trading volumes to forecast future market behavior. This approach operates on the belief that historical price data can provide valuable insights into trends and potential future price movements. Analysts utilize various tools, such as charts and technical indicators, to identify patterns that can signal buying or selling opportunities.

In contrast, market analysis typically encompasses a broader examination of various factors influencing the market, including economic indicators and industry performance, rather than focusing specifically on price and volume. Fundamental analysis, on the other hand, investigates a company's financial health, economic conditions, and intrinsic value, rather than the price dynamics reflected in trading patterns. Qualitative analysis assesses non-numerical factors, such as management quality and brand reputation, which are unrelated to specific price movements or trading volume. Thus, the focus of technical analysis distinctly sets it apart as the correct choice for investigating price fluctuations and trading activity.