$ENA Most Important Principles of Classical Technical Analysis:

1. Price Reflects Everything

All news and information (political, economic, psychological) are reflected in the price.

2. Prices Move in Trends

The market does not move randomly, but in trends: upward, downward, or sideways.

3. History Repeats Itself

Price patterns repeat due to the similarity in traders' behavior.

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🔸 Basic Tools in Classical Technical Analysis:

Tool Description

Trend Line A line drawn to determine the price direction (upward or downward).

Support and Resistance Areas where the price often stops due to increased supply or demand.

Chart Patterns Shapes that recur and are used to predict the upcoming movement, such as head and shoulders, triangles, rectangles.

Price Channels Areas where the price moves between inclined support and resistance lines.

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🔹 Most Famous Patterns in Classical Analysis:

Head and Shoulders: A reversal pattern.

Triangles: Continuation or reversal depending on the trend.

Rectangle: Fluctuation before a break or breakout.

Wedge: Often indicates a reversal.