Technical Analysis in Trading

Published:21 November 2024

Technical analysis is a widely used method in trading based on the study of historical price movements and trading volumes to predict future market behavior. Unlike fundamental analysis, which evaluates the intrinsic value of an asset, technical analysis relies solely on charts, patterns, and indicators to make informed decisions.

Technical analysis is based on the belief that all relevant market information is already reflected in the price of an asset. By analyzing patterns such as support and resistance levels, trends, and candlestick formation, traders seek to identify entry and exit points. Indicators such as moving averages, Relative Strength Index (RSI), and Bollinger Bands provide additional information about market dynamics, overbought or oversold conditions, and potential reversals.

In the following video, you will find out everything you need to know about technical analysis from the very beginning to the advanced level.

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