Technical Analysis
Master the art of reading charts and identifying trading opportunities through technical indicators and chart patterns.
Key Points of Technical Analysis
- • No indicator is perfect - always use multiple confirmations
- • Technical analysis works better on liquid markets
- • Adapt your indicators to your trading style
- • Practice and experience are essential to master TA
Introduction to Technical Analysis
Technical analysis is the study of past price movements to predict future movements.
Fundamental Principles
- Market takes everything into account
- Prices move in trends
- History repeats itself
- Volume confirms the trend
Advantages
- Applicable to all markets
- Useful for timing
- Objective signals
- Adaptable to all timeframes
Support and Resistance
Support
Price level where demand is sufficient to stop the decline
Types
- • Horizontal support
- • Dynamic support
- • Psychological support
Identification
- • Previous low points
- • Moving averages
- • Round levels
Resistance
Price level where supply is sufficient to stop the rise
Types
- • Horizontal resistance
- • Dynamic resistance
- • Psychological resistance
Strategies
- • Breakout
- • Pullback
- • Range trading
Trends and Trendlines
Types of Trends
Bullish ↗
Series of ascending higher highs and higher lows
Bearish ↘
Series of descending lower highs and lower lows
Sideways →
Price moving in horizontal range
Identification
- Peaks and troughs method
- Trendlines
- Trend channels
- Dow theory
Trend Strength
- Increasing volume
- Trend duration
- Progression angle
- Multiple tests
Chart Patterns
Continuation Patterns
Triangles
- • Symmetrical
- • Ascending
- • Descending
Other Patterns
- • Flags: Short consolidation after strong movement
- • Pennants: Short-term triangle
- • Rectangles: Consolidation range
Reversal Patterns
- H&S: Head and Shoulders (H&S)
- Doubles: Double top, Double bottom
- Triples: Triple top, Triple bottom
- Cup: Cup and handle
Japanese Candlesticks
Bullish
- • Hammer
- • Morning star
- • Bullish engulfing
Bearish
- • Shooting star
- • Evening star
- • Bearish engulfing
Indecision
- • Doji
- • Spinning top
- • Harami
Moving Averages
Types of Moving Averages
Standard Periods
- short term: 20-50 periods for short term
- medium term: 50-100 periods for medium term
- long term: 100-200 periods for long term
Strategies
- Golden Cross (50 > 200)
- Death Cross (50 < 200)
- Dynamic support/resistance
- Trend filter
Oscillators and Momentum
RSI (Relative Strength Index)
Calculation: Relative Strength Index (0-100)
Zones
- • Oversold < 30
- • Neutral 30-70
- • Overbought > 70
RSI Strategies
- • Extreme zones
- • Divergences
- • Failure swings
Divergences: Potential reversal signal
MACD
Components
- • MACD line
- • Signal line
- • Histogram
Parameters: 12, 26, 9 (standard)
Signals
- • Crossovers
- • Divergences
- • Zero line
Stochastic
Type: Momentum oscillator (0-100)
Zones
- • Oversold < 20
- • Overbought > 80
Usage
Identify reversals
Fibonacci Retracements
Fibonacci Levels
Main Retracements
Extensions
Applications
- Identify support/resistance zones
- Determine price targets
- Place stop losses
- Confluence with other indicators
Strategies
- retracement: Entry on pullback
- extension: Profit targets
- clusters: Confluence zones
Volume Analysis
Volume Principles
- Volume confirms the movement
- High volume = strong conviction
- Volume/price divergence = signal
Volume Indicators
- OBV: On Balance Volume
- volumeProfile: Volume distribution by price
- VWAP: Volume Weighted Average Price
Volume Patterns
- Volume climax
- Expanding volume
- Contracting volume
- Low volume test
Strategy and Integration
Strategy Construction
- 1Define the main timeframe
- 2Choose 3-4 indicators maximum
- 3Avoid redundancy
- 4Confirm with multiple signals
Backtesting
- Test on historical data
- Optimize parameters
- Validate on different markets
- Measure risk/reward ratio
Trade Management
- entry: Signal confirmed by multiple indicators
- exit: Stop loss and take profit defined
- position: Size according to accepted risk
Practical Tips
- ✅ Start simple with 2-3 indicators maximum
- ✅ Test your strategy in demo before going live
- ✅ Document your trades to learn from mistakes
- ✅ Stay disciplined and follow your trading plan
- ✅ Never stop learning and improving
Important Warning
The information presented on this page is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading incentives. Trading carries significant risks of financial losses. Past performance is not indicative of future results. We strongly encourage you to properly educate yourself, practice on a demo account, and never invest more than you can afford to lose. Consult a professional financial advisor before making any investment decision.
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