TECHNICAL ANALYSIS MASTERCLASS
ENGLISHChapter-1 Introduction to Technical Analysis
What is Technical Analysis?
Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.
Technical vs Fundamental Analysis
While fundamental analysis focuses on determining a security's intrinsic value by examining related economic and financial factors, technical analysis focuses solely on the price and volume data of a security.
Core Principles
1. Market action discounts everything: All known information is reflected in the price.
2. Prices move in trends: Prices are more likely to continue a past trend than move erratically.
3. History tends to repeat itself: Market psychology plays a significant role in price movements, and these patterns tend to repeat.