Market Analysis
Technical Analysis 101
Fundamentals of technical analysis and chart reading
February 4, 2025
9 min read
PROFIX Team
Key Takeaways
- •Price action is the foundation of technical analysis
- •Support and resistance are key concepts
- •Trends can be identified using multiple methods
- •Volume confirms price movements
Technical Analysis Fundamentals
Technical analysis is the study of price charts and market data to predict future price movements.
Key Technical Concepts
- Support: Price level where buying interest is strong
- Resistance: Price level where selling interest is strong
- Trend: Direction of price movement over time
- Volume: Number of shares or contracts traded
Chart Types
- Line Charts: Simple price line over time
- Bar Charts: Show open, high, low, and close
- Candlestick Charts: Visual representation of price action
- Point and Figure: Filter out time and small moves
Technical Indicators
Common technical indicators include:
- Moving averages
- RSI (Relative Strength Index)
- MACD (Moving Average Convergence Divergence)
- Bollinger Bands
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