#TradingAnalysis101 Here’s a quick breakdown of Trading Analysis 101:

1. Types of Analysis

Technical Analysis: Uses charts, indicators (e.g., RSI, MACD), and price patterns to predict future movements.

Fundamental Analysis: Evaluates financial statements, earnings, and economic factors to determine a stock’s intrinsic value.

Sentiment Analysis: Gauges market mood through news, social media, and investor behavior.

2. Key Technical Indicators

Moving Averages (MA) – Smooths price data to identify trends.

Relative Strength Index (RSI) – Measures momentum and overbought/oversold conditions.

MACD (Moving Average Convergence Divergence) – Signals trend reversals.

Support & Resistance Levels – Key price points where buying or selling pressure increases.

3. Risk Management

Stop-Loss Orders – Protect against excessive losses.

Position Sizing – Never risk more than 1-2% of capital per trade.

Risk-Reward Ratio – Aim for at least a 2:1 ratio to maximize profitability.

4. Market Trends & Patterns

Uptrend – Higher highs and higher lows.

Downtrend – Lower highs and lower lows.

Sideways (Range-Bound) – Price moves within a horizontal range.

Chart Patterns – Head & Should