
Master chart patterns, indicators, and leverage trading
Technical Analysis (TA) starts with understanding charts. Candlestick charts show price action over time, with each candle representing open, high, low, and close prices. Trendlines (up, down, sideways) help identify the market's direction. Support levels are price points where buying pressure tends to overcome selling pressure, while resistance levels are where selling pressure overcomes buying.
Recognizing basic patterns like head and shoulders, double tops/bottoms, and triangles can provide clues about potential future price movements. Volume analysis also plays a key role in confirming pattern strength.
1. What does a candlestick chart primarily show?
2. A price level where selling pressure historically overcomes buying pressure is known as:
3. Why is trading volume important in TA?
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