The Art and Science of Technical Analysis
Technical analysis involves studying price charts to predict future market movements. It’s like a meteorologist analyzing weather patterns to forecast the weather.
Common Technical Indicators: The Trader’s Toolbox
Indicators like moving averages, RSI (Relative Strength Index), and Bollinger Bands are tools traders use to decipher market trends. Think of them as navigational tools helping traders like Tom chart a course through the markets.
Patterns and Trends: Reading the Market’s Language
Chart patterns like head and shoulders, triangles, and flags are the market’s way of communicating. Skilled traders learn to interpret these patterns to anticipate future price movements.
