Technical Analysis is a method used to evaluate and predict the future price movements of financial assets (like stocks, forex, or crypto) based on historical market data — mainly price and volume.
Here’s a quick breakdown:
🔍 Core Concepts:
Price Discounts Everything: All known info (news, earnings, etc.) is already reflected in the price.
Price Moves in Trends: Prices tend to move in trends (up, down, sideways) rather than randomly.
History Repeats Itself: Market patterns and psychology repeat over time.
🛠️ Common Tools:
Charts: Line, bar, candlestick charts to visualize prices.
Indicators: Help identify trends and signals.
Moving Averages (e.g. 50-day MA)
RSI (Relative Strength Index) – measures overbought/oversold
MACD (Moving Average Convergence Divergence) – trend-following momentum
Bollinger Bands – volatility indicators
Support & Resistance: Key price levels where stock tends to stop/reverse.
Patterns: Repeating formations like:
Head & Shoulders
Triangles
Double Top/Bottom
📈 Why Use Technical Analysis?
Short-term trading (day/swing traders)
Timing entry/exit points
Complement to fundamental analysis
