#BinanceBootCamp

Technical analysis is one of the main methods used in evaluating financial markets, relying on the study of historical price data and trading volumes to predict future trends. There are many tools that technical analysts use to make investment decisions, among the most prominent are:

1. Technical Indicators: These are mathematical tools calculated using price data and trading volumes, including:

Moving Averages: Such as Simple Moving Average (SMA) and Exponential Moving Average (EMA), which help in determining trends.

Relative Strength Index (RSI): Measures the strength and momentum of the price, and is used to identify overbought or oversold conditions.

Moving Average Convergence Divergence (MACD): Identifies turning points in the trend by comparing two moving averages.

2. Chart Patterns: These are formations that recur in price movement and help in predicting trends, such as:

Head and Shoulders: Indicates a reversal of trend.

Triangles: Suggest continuation or reversal of trend.

3. Support and Resistance Levels: Represent key points where the price halts due to supply or demand strength, and help in identifying entry and exit areas for trades.

4. Trend Lines: Used to draw upward or downward trends and determine the strength of the current trend.