How to analyze a specific stock or currency pair using technical or fundamental analysis:

Technical analysis

Aims to study price movement based on historical data using charts.

Key steps:

1. Choose the appropriate time frame:

• For short-term speculation: Use small time frames (5 minutes, 15 minutes, hourly).

• For long-term investment: Focus on larger time frames (daily, weekly, monthly).

2. Trend analysis:

• Uptrend: Highs and lows gradually rise.

• Downtrend: Highs and lows gradually decrease.

• Sideways trend: Horizontal movement with no clear direction.

3. Use technical indicators:

• Moving Averages: To determine the general direction of the price.

• Relative Strength Index (RSI): To know the state of overbought or oversold.

• Bollinger Bands: To determine potential support and resistance levels.

4. Drawing Support and Resistance Levels:

• Support: A price level from which the price is expected to bounce upwards.

• Resistance: A price level from which the price is expected to bounce downwards.

5. Analyzing Chart Patterns:

• Reversal patterns (such as head and shoulders).

• Continuation patterns (such as triangles).

6. Checking Volume:

• Increased volume during a break of a support or resistance level confirms the breakout.$#MarketDownturn