Summary
What is technical analysis and why is it a key tool for every trader?
When you look at a chart, you don't just see lines, but rather a reflection of investor sentiment: fear, greed, hope, despair. This is the essence of technical analysis: reading market behavior through prices and volume.
🔹 The basic pillars of technical analysis: Price precedes everything else: any information (news, rumors, economic decisions) appears in the price before you read it in the newspaper. Prices move in trends: uptrend, downtrend, sideways. History repeats itself: price patterns repeat because human behavior is constant.
🔹 Key tools for traders: Trends: lines that define the general path. Levels (Support & Resistance): control points for entering and exiting funds. Indicators: auxiliary tools such as RSI and MACD.
🔹 Conclusion: Technical analysis isn't magic; it's simply a language that traders understand. Those who master it can see the market with clearer eyes than others.