What is Beta in technical analysis?

In technical analysis, **beta** is a measure of an asset's volatility or risk relative to the overall market, typically represented by a benchmark like the S&P 500 index. It helps investors understand how much an asset’s price tends to move in relation to market movements. - A **beta of 1** means the asset’s price moves in line with the market. If the market goes up by 1%, the asset is expected to also increase by 1%. - A **beta greater than 1** indicates that the asset is more volatile than the market. For example, a beta of 1.5 means the asset is likely to move 1.5 times as much as the market, so if the market increases by 1%, the asset might rise by 1.5%. - A **beta less than 1** means the asset is less volatile than the market. For instance, a beta of 0.5 means that for every 1% market move, the asset might move only 0.5%. Beta is commonly used to assess the risk of an investment. A high beta stock might offer higher potential returns but comes with increased risk, while a low beta stock may be safer but with lower growth potential.