Introduction to Trading: Technical Analysis

1. What is Technical Analysis?

Technical analysis involves analyzing historical price charts and trading volumes to forecast future

market movements. It relies on patterns, indicators, and trends.

2. Chart Patterns

- **Head and Shoulders**: Predicts a reversal in trend.

- **Double Top/Bottom**: Indicates a potential change in trend.

- **Triangles**: Continuation patterns suggesting trend continuation.

3. Technical Indicators

- **Moving Averages**: Shows average price over a specific period.

- **Relative Strength Index (RSI)**: Measures momentum and identifies overbought or oversold

conditions.

- **MACD**: Shows the relationship between two moving averages.

4. Tools and Software

Traders use charting software and platforms like TradingView and MetaTrader for analysis. These

tools offer various indicators and chart types to assist in decision-making.