Which forecasting method would you use for short-term decision-making based on price trends?

Technical forecasting is the appropriate choice for short-term decision-making based on price trends. This method focuses on analyzing past price movements and trading volumes to identify patterns and make predictions about future price movements. This approach is particularly useful for traders and investors who need to make quick decisions, often involving short time frames.

Technical forecasting uses various charting tools and indicators to interpret price trends and market behavior, allowing practitioners to identify potential buying or selling opportunities based on historical price actions. This contrasts with other methods, which might examine the underlying factors influencing price changes over the long term or consider broader economic indicators rather than the immediate price trends.

For instance, fundamental forecasting primarily analyzes economic and financial data to assess value, while historical analysis reviews past performance without focusing specifically on price trends. Market-based forecasting might consider overall trends but does not rely as heavily on the specific price movements used in technical analysis. Thus, for the needs of short-term decision-making based on current price trends, technical forecasting is the most suitable method.