Technical Anlysis

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts. Technical analysts believe past trading activity and price changes of a security can be valuable indicators of the security's future price movements.

The 4 Basic Principles of TA

  • Markets alternate between range expansion and range contraction. ...
  • Trend continuation is more likely than reversal. ...
  • Trends end in one of two ways: climax or rollover. ...
  • Momentum precedes price.

What are the 3 rules of technical analysis?

(1) The market discounts everything
(2) prices move in trends and countertrends
(3)price action is repetitive, with certain patterns reoccurring.

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