Technical analysis is the science and art of interpreting a stock chart.
Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics.
It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
Technical analysis is a simple mechanism for money-making techniques.
The majority of people trade stocks through referrals, thereby, making uninformed decisions.
As results lose money in trades. Nevertheless, practicing trading without formal knowledge is gambling.
Technical analysis offers the tools required to successfully transverse the gap.
Given the volatile nature of the securities market in traditional times. Thereby, it is imperative to be equipped in every possible tool available to invest and trade successfully.
If understood well, allow one to be to sustain in all kinds of the trading range and trending market.
Technical analysts have a wide range of tools that they can use to find trends and patterns on charts.
These include moving averages, support and resistance levels, Bollinger Bands, and more.
All of the tools have the same purpose: to make understanding chart movements and identifying trends easier for technical traders.