What is technical analysis in trading?

What is technical analysis in trading?

Technical analysis is a method used to evaluate securities by analyzing statistics generated by market activity, such as past prices and volume.

How do I read a candlestick chart?

A candlestick chart displays the open, high, low, and close prices of a security for a specific period. Each 'candlestick' represents price movement.

What are some common indicators used in technical analysis?

Common indicators include Moving Averages, Relative Strength Index (RSI), and Bollinger Bands, which help traders identify trends and potential reversals.

Can you explain support and resistance levels?

Support levels are price points where a stock tends to stop falling and may bounce back up, while resistance levels are where it tends to stop rising and may fall back down.

How can I use technical analysis for day trading?

For day trading, you can use technical analysis to identify short-term trends, entry and exit points, and manage risk through stop-loss orders.