Introduction to Technical Analysis

Technical Analysis (TA) is the study of historical price movements to predict future market trends. TA assumes that all known information is already factored into price and that prices move in trends. Traders use charts, indicators, and patterns to make decisions.

Common TA tools:

• Candlestick Charts: Show open, high, low, and close prices.
• Support and Resistance: Key price levels where markets tend to bounce or break.
• Moving Averages (MA): Track average price over a period to identify trends.
• Relative Strength Index (RSI): Measures the speed and change of price movements.
• MACD (Moving Average Convergence Divergence): Identifies trend direction and momentum.

TA is most effective when combined with proper risk management and used alongside fundamental analysis.