Technical Analysis Basics
Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume.
Key Concepts:
- Support and Resistance: Levels at which the price tends to stop and reverse.
- Moving Averages: A method to smooth out price data to identify the direction of the trend.
- Indicators: Mathematical calculations based on the price or volume of a security.
Technical analysis often involves using charts and other tools to identify patterns that can suggest future activity.