📈 Technical Analysis Basics Guide

Technical analysis is a method used to evaluate securities by analyzing statistics generated by market activity, such as price and volume. It helps traders identify trends, patterns, and potential price movements.

🔍 Key Concepts

Price Action: Focuses on historical price data to predict future movements
Support & Resistance: Levels where the price may struggle to break through
Trend Lines: Connects price points to show direction (📈 Upward, 📉 Downward)
Time Frames: Analyzes charts across different durations (1D, 4H, 1H)

🛠️ Common Tools

Candlestick Charts: Visual representation of price changes
Moving Averages: Smooths price data to identify trends
Volume Indicators: Measures trading volume for confirmation
Bollinger Bands: Shows volatility ranges around price

🧩 Chart Patterns

Head and Shoulders: Reversal pattern with three peaks
Triangles: Consolidation patterns (ascending, descending, symmetrical)
Flags and Pennants: Short-term continuation patterns
Double Tops/Bottoms: Reversal patterns with two similar peaks

📊 Technical Indicators

RSI (Relative Strength Index): Measures overbought/oversold conditions
MACD (Moving Average Convergence Divergence): Identifies trend direction and strength
Stochastic Oscillator: Shows momentum and potential reversals
Ichimoku Cloud: Provides support/resistance and trend direction

For deeper insights into advanced technical indicators, visit our Technical Analysis Indicators Guide.