“Technical analysis is pretty lines and charts”
The primary methods of technical analysis come down to recognising patterns, using technical indicators and analysing price action.
Recognising patterns in the market can be done in many ways such as; support and resistance levels, shape “set-ups” and reviewing similar market environments. Technical indicators also play a role in analysing markets. The most common technical indicators are moving averages, MACD, Bollinger Bands, Fibonacci levels and more. These technical indicators will use price data to create visual points on a chart. Finally analysing price action involves looking at what price is doing in relation to its history and how prices form.
There is a lot of information to take in, and this technical analysis series will explain it in each step. If you have any questions throughout you can always contact us via the Chat Room.