If you're starting in technical analysis, here are three basic principles you should know. They are simple but powerful.
1️⃣ Market movements discount everything.
Price movements should reflect changes in supply and demand:
📈 When demand exceeds supply, prices rise.
📉 If supply is greater, prices fall.
For example, if an asset like Bitcoin has more buyers (demand) than sellers (supply), the price tends to rise.
2️⃣ Prices follow trends.
A moving trend is more likely to continue than to reverse. This is based on Newton's First Law: "An object in motion stays in motion... unless acted upon by an external force."
3️⃣ History repeats itself.
Studying the past helps us understand the future. Price behavior patterns tend to repeat.
💡 What do you think? Did you already know these principles? Tell me in the comments.
