It is the study of price movement on charts
with the aim of predicting future price trends. It does not rely on news or
economic data, but relies only on charts, price, and time.
💎The difference between technical analysis and
fundamental analysis:
Technical analysis: - It relies on price and movement
of the market by analyzing charts with the aim of predicting
the price direction in the short term
Fundamental analysis: - It relies on news, profits, and the economy through economic and financial data to determine the true value of an asset
💎Basic Hypotheses of Technical Analysis:
1. Price reflects everything: - This means that all news, sentiments, and information have already been reflected in the price.
2. Prices move in trends, meaning that the market does not move randomly but moves in trends that can be analyzed: bullish, bearish, or sideways.
3. History repeats itself because people's behavior is repetitive, price
patterns also repeat over time.
💎Benefits of Technical Analysis:
Applicable to all markets (stocks, currencies,
digital currencies).
It can be applied to all time frames
(minute - hour - day...).
Quick to understand with practice.
