Technical Analysis: The Complete Guide

Understanding Technical Analysis

Technical analysis is the study of price movements using charts and indicators to predict future market behavior.

Essential Technical Indicators

• Moving Averages (MA)
• Relative Strength Index (RSI)
• MACD (Moving Average Convergence Divergence)
• Bollinger Bands

Chart Patterns

Common chart patterns that traders look for:

1. Head and Shoulders
2. Double Top/Bottom
3. Triangle Patterns
4. Flag Patterns

Using Technical Indicators

const commonIndicators = [
  { name: 'RSI', timeframe: '14 periods' },
  { name: 'MACD', settings: '12,26,9' },
  { name: 'MA', types: ['Simple', 'Exponential'] }
];

Best Practices

“Technical analysis is the study of market behavior, primarily through the use of charts, for the purpose of forecasting future price trends.” - John J. Murphy

Tips for Technical Analysis

• Use multiple timeframes
• Combine different indicators
• Confirm signals before trading
• Keep your charts clean and simple

Conclusion

Technical analysis is a powerful tool when used correctly. Remember to combine it with fundamental analysis for better results.