Technical

Technical Analysis

Analyzing price charts and indicators to forecast future price movements based on historical patterns.

Definition

Technical analysis is a method of forecasting price movements by studying historical charts, patterns, and indicators. It assumes all relevant information is reflected in price and that history tends to repeat itself.

How It Works

Study price charts and patterns
Use indicators (RSI, MACD, moving averages)
Identify support and resistance levels
Look for trend continuation or reversal signals

Types of Technical Analysis

Chart Patterns

Head & shoulders, triangles, double tops

Indicators

RSI, MACD, Bollinger Bands, moving averages

Price Action

Candlestick patterns, support/resistance

Trading Tips

Combine multiple indicators for confirmation

Works best in trending markets

Consider fundamental factors alongside technicals

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