Technical Analysis Made Simple
Decode price charts, candlesticks, and trading patterns for better timing.
Decoding Market Patterns
Basics of Chart Reading
Learn to interpret stock price charts, understanding trends (uptrend, downtrend, sideways), and volume.
Key Indicators: RSI, MACD, Moving Averages
Introduction to popular technical indicators like Relative Strength Index (RSI) for momentum, Moving Average Convergence Divergence (MACD) for trend changes, and Moving Averages for smoothing price action.
Support and Resistance
Identify key price levels where a stock tends to find buying support or selling resistance, helping in entry/exit decisions.
How Traders Use It vs Long-Term Investors
Technical analysis is primarily used by short-term traders for timing. Long-term investors might use it to supplement fundamental analysis for entry points but rely less on it for core investment decisions.
Use with Caution
Technical analysis is based on historical price patterns and is not a guaranteed predictor of future movements. It's often more subjective than fundamental analysis and carries its own set of risks.