$BTC II. Core Tools of Technical Analysis

1. Price Charts:

• Candlestick Chart: Displays opening price, closing price, highest price, and lowest price.

• Trendline: Connects price highs or lows to identify support levels (potential bottoms when prices are falling) and resistance levels (potential tops when prices are rising).

2. Common Technical Indicators:

• Moving Average (MA): Smooths price fluctuations to identify trend direction (e.g., 50-day moving average, 200-day moving average).

• Relative Strength Index (RSI): Measures overbought (>70) or oversold (<30) conditions.

• MACD: Determines trend strength and reversal signals by the difference between two moving averages.