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Technical Analysis

Study of price movement and volume to predict future trends

What is Technical Analysis?

Technical analysis is based on the idea that "history repeats itself." By studying charts and price patterns, future movements can be predicted. Used with all financial markets.

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Price Reflects All
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Prices Move in Trends
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History Repeats

Core Concepts

Trends

Price moves in trends. Uptrend (higher highs/lows), downtrend (lower highs/lows), or sideways.

Support & Resistance

Levels where price typically stops. Support prevents dropping, resistance prevents rising.

Volume

Confirms move strength. High volume with trend = strength, low volume = weakness.

Momentum

Speed of price change. Strong momentum precedes continuation, weak precedes reversal.

Chart Types

Line

Simplest type, shows only closing prices

Quick overview

Bar

Shows OHLC (Open, High, Low, Close)

Detailed analysis

Candlestick

Like bar but easier to read with clear patterns

Most popular

Timeframes & Trading Styles

M1-M15
Scalping
Hold: Minutes
M30-H1
Day Trading
Hold: Hours
H4-D1
Swing Trading
Hold: Days
W1-MN
Position Trading
Hold: Weeks-Months

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