An introduction to technical analysis
What is technical analysis?
Technical analysis is a method for evaluating securities based on past market activity. Technical analists use this method usually to look for trends that they can start trading in. They believe that the past price movement and volume (the total amount of transaction) are good indicators for forecasting the future price movement.
Why are people using technical analysis?
People use technical analysis tools for many reasons. For example identifying trends for a short-term trade or for identifying a price movement and so on.
We at 101trading use technical analysis mostly to decide when to buy and when to sell, when we are in for swing trades or short term trades and long term investments.