Summary Of Overview to Technical Analysis

Notes To Remember:

Different Types of analysis:

Fundamental Analysis (FA): Trader's analysis and inventor's decisions mainly rely on the news and latest financial statements of companies.
Technical Analysis (TA): Work with values of price over time and statistical analysis of the market. Consider the trading volume, patterns of price, supply and demand, trend and trend line, etc.

Technical Analysis is...

a knowledge of the market.
a flexible, well-functioning skill of market.
a plan, preparation, and expectation of winning in the market.

Price Chart: A price chart is a showcase of the market and simply put on display what goes through the price during times. It records and plots every movement of the securities price for each specific time as diagrams, It has two axes: time and price.

Time: Time is a ruler of the price chart and its horizontal ax. Chartists choose a period of time to evaluate every aspect of the market by different strategies. This period of time is known as the "Time frame" and can be categorized as seconds, minutes, hours, days, weeks, months, and years.
Price: The price is the monetary value of an asset or service. A price value is recorded for each time, and their sequences make a pattern of the market's behavior.

Different Types of Price on a Price Chart:

Open price: The price of the first transaction of share during business time.
Close price: The price of the last transaction of share during business time.
Low price: The lowest transaction price during business time.
High price: The highest transaction price during business time.

Different Types of Price Charts:

Line chart
Bar chart
Candlesticks chart

Different Types of Trading:

Scalper
Day trader
Swing trader
Position trader

Frequently Asked Questions

Technical analysis is knowledge of analyzing the market based on numerical values of price and time over price chart. It relies on history of price to predict the future of market.

Fully learn technical analysis rules and choose trading strategies. Start trading with small shares and gain experience. Everything is obvious but not easy!

Technical analysis can be used on any market's securities that has price chart. This includes Forex, stocks, currencies, futures, commodities, bonds, other securities.

Time frame is a duration of trend between specific times. It can be selected from minutes, hours, days, weeks, months and even years.

By far, the candlestick chart is the most popular type of chart because it is easy to read and give comprehensive information about the market.

Buyers' and sellers' decisions, supply and demand directly affect market fluctuations. Technical analysis helps traders to have a wide range of views over the market and take better technical decisions. As it is knowledge, it has rules and processes to lead investors into a logical approach.