Lesson 1

Good day everyone. Today is the day we delved into the study of technical analysis. But before going into the rudiments of candlestick patterns and chart analysis. Let's begin with the question. What is Technical

Analysis?

Technical analysis is a trading technique used to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement, volume, Candlesticks and cahrts. Unlike fundamental analysis, which evaluates a security's value based on business results, technical analysis focuses on the study of price and volume. It involves the study of price movements using charts as a primary research tool and is applied to stocks, indexes, commodities, futures, or any tradable instrument where the price is influenced by supply and demand.

Understanding Technical Analysis.

Technical analysis is a form of analysis that uses price data and volume data, typically displayed graphically in charts. The charts are analyzed using various indicators to make investment recommendations. It has been used by traders, analysts, and investors for centuries and has achieved broad acceptance among regulators and the academic community, particularly with regard to its behavioral aspects. It involves forecasting future financial price movements based on past price movements and can be applied to various timeframes, from minutes, hours, daily to monthly price data.

The main purpose of using Technical analysis analysis is to attempt to predict future price movements, which would provide us with the information needed to make a profit and prevent or minimise potential loss.

Technical analysis helps traders to identify entry and exit points for potential trades.

I believe this would help clear some of your misconceptions about Technical analysis. This is just an introduction. Later in the day we will delve into the study of candlesticks.

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