Learning Technical Analysis

Technical analysis is an analytical technique known in the financial world that are used to predict the trend of a stock price by studying past market data, primarily price and volume movements.

Technical analysts often use a variety of indicators which are typically a mathematical transformation of price or volume. This indicator is used as a tool to determine whether an asset is in a trend and direction of asset prices in the tern. Analysts also studied the correlation between price, volume, and margin in futures trading. The indicator for example Relative Strength Index and MACD. Another study also uses the correlation between the change in option and a put option / purchase and price.

In the foreign exchange market, technical analysis is more widely used than its practitioners use fundamental analysis. Some internal studies indicate that technical trading rules can generate consistent returns.

Here are some of the technical indicators that we need to learn:
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