📉 Technical analysis for beginners

🧊 1. What is technical analysis and why is it important?
Technical analysis is the study of price movements and charts to predict future market direction. It is based on the premise that price reflects everything and that patterns repeat. Suitable for day traders and quick decision-makers.

📊 2. How to read Japanese candles?
Each candle represents price movement over a specific time period.
📍Body = Difference between open and close.
📍Shadows = Highest and lowest price.
Green candle = Up, Red candle = Down.

📈 3. What are support and resistance lines?
📍Support: A zone where the price struggles to drop below.
📍Resistance: A zone where the price struggles to surpass.
Using them helps you identify entry and exit points.

🌀 4. What is a trend and how do we identify it?
Trend = Direction of price movement (Upward - Downward - Sideways).
📍Upward trend: Higher highs and higher lows.
📍Downward trend: Lower highs and lower lows.
Identify the trend before making any decisions.

⚡ 5. Momentum indicators: RSI indicator as an example
RSI (Relative Strength Index) measures if a currency is "overbought" or "oversold."
📍Above 70 = Overbought (potential drop)
📍Below 30 = Oversold (potential rise)

📉 6. Moving averages
They help you "smooth" price movement and discern the trend.
MA50 and MA200 are the most popular.
If the price is above MA50, the market is often upward.
Crossover of moving averages may indicate an entry opportunity.

🔀 7. Common Japanese candle patterns
📍Hammer: End of a downward trend and beginning of an upward movement.
📍Doji: Market indecision.
📍Engulfing: Potential trend reversal.
Recognizing these patterns enhances your decisions.

📐 8. Common chart patterns
📍Head and Shoulders: Trend reversal.
📍Ascending/Descending Triangle: Trend continuation.
📍Price Channel: Regular movement within two lines.
Each pattern has implications and probabilities.

📎 9. Trading volume and its role in analysis
Increased trading volume during a resistance break = Trend confirmation.
If the price rises without an increase in volume, the movement is weak and may reverse.

💻 10. Free tools for technical analysis
TradingView: A free platform for charting and analysis.
Binance charts: Provide built-in tools for indicators.
Investing.com: Useful for viewing news and indicators.

Start experimenting and learn step by step.

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