What is Technical Analysis

In the financial market i.e Stock or Forex Technical Analysis is a method of forecasting price movements by looking at purely market-generated data. A trader who uses technical analysis (sometimes called a technician or chartist) is essentially concerned with two things.
  1. What is the current price ?
  2. What is the history of price movement ?
Technical Analysis is the forecasting of future financial price movements based on an examination of past price movements. Technical analysis can help investors anticipate what is "likely" to happen to prices over time. Technical analysis uses a wide variety of charts that show price over time. In this class we will go over pattern recognition. I will show you 10 of the most widely followed chart patterns. Teach you the proper way to draw them and explain how I trade them.

Technical Analysis Is Based On Three Major Conclusions About The Market :

1. Market Action discounts everything
Supply Vs. Demand factors.
Fundamental, Political and Psychological factors.

2. Prices move in trends
Identify new and existing trend.
Prices move in trends– Trend in motion is more likely to continue than to reverse.

3. History repeats itself
Future is the repetition of past

Technical Vs. Fundamental Analysis

  • Study the cause of market movement.
  • Supply-demand factor.
  • Government interventions.

  • Study the effect of movement.
  • Price
  • Volume
  • Trend
  • Chart

Approaches of Technical Analysis

Types Of Charts

Basic Supports & Resistances

Trend Line Theory

Stock Chart Patterns

  • Volume Indicators
  • Momentum Indicators  etc.

Conclusion: To be a independent technical analyst you will have to learn some of above mentioned technique necessary and also for making profitable trades in the world of financial market.