Learn stock market technical analysis
Technical analysis is the most widely used method of analysis by private traders on the stock exchange. It is based on the study of historical prices and makes it possible to anticipate an asset’s future movements. Technical analysis is not an exact science, it is oriented around the study of probabilities. The elements that compose it are diverse: chart patterns, Japanese candlesticks, technical indicators and graphic representations. Here you will find a guide to learning technical analysis!
Technical analysis course for beginners
The first step to training yourself in technical analysis is to understand this method of analysis. What is stock market technical analysis? Next, you must learn to identify the trend on a chart, plot supports and resistances, use the right tools to analyse and know what to do when face with an untouched chart. This learning section gives you the basics of technical analysis.
Technical indicators are one of the main tools of technical analysis in the stock market. They allow you to plot buy/sell signals on your charts and exit your trade at the right time. They are the basis of many trading strategies. Understand that there is no miracle technical indicator. The purpose of this section is to present the various existing indicators and their functioning. However, to make them powerful, you need to optimize their settings. You need to do your tests on a demo account to understand which indicators to use.
Chart patterns are another basic element of technical analysis. They can be classified into two categories: continuation and reversal patterns. In this section, we present the different patterns, their graphic representation, the statistics concerning them and give you some tips on how to use them well for trading. Chart patterns are precious allies to give you signals to buy and sell on the stock market. Understand that a chart pattern is only valid when its signal line is crossed by the price on a price chart.
Japanese candlesticks are the most widely used price display method in technical analysis. They display the highest, lowest, opening and closing points over a given period. By studying the shape of one or more consecutive candlesticks, it is possible to establish bullish or bearish scenarios. In this section on learning about technical analysis, you will find a presentation about the different Japanese candlesticks classified by reversal and continuation patterns.
The different types of charts
Japanese candlesticks are not the only method of charting stock prices. Depending on your trading preferences, you can choose to use a price chart in Renko, Heikin Ashi, Kagi, Ticks or market profile to perform your technical analyses. Each method has its advantages and disadvantages. It's up to you to see which one you prefer.