Master chart reading, indicators, and patterns to predict price movements
Technical analysis is the study of price charts and market data to predict future price movements. Unlike fundamental analysis, which focuses on economic factors, technical analysis believes that all market information is already reflected in the price.
Most popular chart type showing open, high, low, and close prices in each time period.
Simple chart connecting closing prices, useful for identifying overall trends.
Vertical bars showing high, low, open, and close prices for each period.
Smooth price action to identify trends
Trend identification and support/resistance
20, 50, 200 periods
Price levels where buying pressure typically emerges, preventing further decline.
Price levels where selling pressure typically emerges, preventing further advance.
Three peaks with middle peak higher than others
Two peaks/troughs at similar levels
Converging trend lines forming triangle
Brief consolidation after strong move
Use for overall trend direction and major support/resistance levels.
Use for swing trading setups and intermediate trend analysis.
Use for precise entry/exit points and day trading setups.
Problem: Using too many indicators that give conflicting signals
Solution: Stick to 2-3 complementary indicators maximum
Problem: Not considering overall market conditions and news
Solution: Always check economic calendar and market sentiment
Problem: Seeing patterns that aren't really there
Solution: Be objective and wait for clear, confirmed patterns
Problem: Using inappropriate timeframes for trading style
Solution: Match timeframes to your trading strategy and goals
Get access to advanced charting tools and technical indicators to improve your analysis.