Technical analysis involves evaluating securities through statistical analysis of market activity, such as price movements and volume. Here are some key concepts and tools used in technical analysis:

### 1. **Charts**

- **Line Chart**: Shows closing prices over a specific period.

- **Bar Chart**: Displays open, high, low, and close prices for a given period.

- **Candlestick Chart**: Similar to bar charts but with a more visual representation.

### 2. **Trends**

- **Uptrend**: Series of higher highs and higher lows.

- **Downtrend**: Series of lower highs and lower lows.

- **Sideways/Range**: Prices move within a horizontal range.

### 3. **Indicators**

- **Moving Averages**:

- **Simple Moving Average (SMA)**: Average of closing prices over a period.

- **Exponential Moving Average (EMA)**: Gives more weight to recent prices.

- **Relative Strength Index (RSI)**: Measures the speed and change of price movements, typically used to identify overbought or oversold conditions.

- **Moving Average Convergence Divergence (MACD)**: Shows the relationship between two moving averages of a security’s price.

- **Bollinger Bands**: Uses standard deviation to plot lines above and below a moving average.

### 4. **Patterns**

- **Head and Shoulders**: Predicts a reversal from bullish to bearish or vice versa.

- **Double Top/Bottom**: Indicates a reversal after a peak or trough.

- **Triangles**: Symmetrical, ascending, and descending triangles can indicate continuation or reversal.

### 5. **Volume Analysis**

- **Volume**: Helps confirm trends and patterns. Higher volume indicates strong momentum.

### Example Strategy: Moving Average Crossover

1. **Select two moving averages** (e.g., 50-day SMA and 200-day SMA).

2. **Generate a buy signal** when the shorter moving average (50-day SMA) crosses above the longer moving average (200-day SMA).

3. **Generate a sell signal** when the shorter moving average crosses below the longer moving average.

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