Technical Analysis Learning
Master the art of technical analysis with our comprehensive educational resources
Start LearningWhat is Technical Analysis?
The study of historical market data to forecast future price movements
Technical analysis is a trading discipline that evaluates investments and identifies trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.
Unlike fundamental analysis, which attempts to evaluate a security's value based on business results such as sales and earnings, technical analysis focuses on the study of price and volume.
Learning Path
Follow our structured learning path to master technical analysis
Basic Concepts
Understand the foundation of technical analysis, including price action, support and resistance, and market trends.
Chart Types
Learn to read different chart types including line charts, bar charts, and the most popular - candlestick charts.
Technical Indicators
Study various technical indicators like Moving Averages, RSI, MACD, and how to use them effectively.
Chart Patterns
Recognize and interpret common chart patterns that signal potential market movements.
Trading Strategies
Combine different elements to create effective trading strategies and manage risk.
Key Topics
Explore essential technical analysis concepts
Support and Resistance
Support is a price level where a downtrend can be expected to pause due to a concentration of demand. Resistance is where an uptrend may pause due to a concentration of supply.
Trend Analysis
Identifying the direction of market movement. Trends can be upward (bullish), downward (bearish), or sideways (ranging). The trend is your friend in technical analysis.
Volume Analysis
Volume is the number of shares or contracts traded in a security. Volume analysis examines the relationship between price movements and trading volume to gauge the strength of a trend.
Timeframes
Different timeframes (intraday, daily, weekly, monthly) provide different perspectives on price action. Multiple timeframe analysis can provide more reliable signals.
Moving Averages
Moving averages smooth price data to create a single flowing line. The most common types are Simple Moving Average (SMA) and Exponential Moving Average (EMA). They help identify trends and potential support/resistance levels.
Relative Strength Index (RSI)
RSI is a momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100 and is typically used to identify overbought or oversold conditions.
MACD (Moving Average Convergence Divergence)
MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price. It consists of the MACD line, signal line, and histogram.
Bollinger Bands
Bollinger Bands consist of a middle band (SMA) and two outer bands that are standard deviations away from the middle band. They help identify volatility and overbought/oversold conditions.
Reversal Patterns
Patterns that signal a change in the current trend:
- Head and Shoulders
- Double Top/Double Bottom
- Triple Top/Triple Bottom
- Rising/Falling Wedges
Continuation Patterns
Patterns that suggest the trend will continue after a brief pause:
- Flags and Pennants
- Triangles (Ascending, Descending, Symmetrical)
- Rectangles
- Cup and Handle
Candlestick Patterns
Bullish Patterns:
- Hammer
- Bullish Engulfing
- Morning Star
- Piercing Line
Bearish Patterns:
- Hanging Man
- Bearish Engulfing
- Evening Star
- Dark Cloud Cover
Trend Following
Strategies that aim to capture gains through the analysis of an asset's momentum in a particular direction. These strategies use indicators like moving averages to identify and follow trends.
Mean Reversion
Strategies based on the concept that prices tend to revert to their mean or average over time. These work well in ranging markets and use indicators like Bollinger Bands.
Breakout Trading
Strategies that focus on entering positions when the price breaks through key support or resistance levels. Volume confirmation is crucial for valid breakouts.
Risk Management
Essential components of any trading strategy:
- Position Sizing
- Stop-Loss Orders
- Risk-Reward Ratio
- Diversification
Learning Resources
Expand your knowledge with these recommended resources
Recommended Books
Technical Analysis of the Financial Markets by John Murphy
Encyclopedia of Chart Patterns by Thomas Bulkowski
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