Yes, I am a technical analyst.
There you go.
This is something that I cannot deny.

Now that we have cleared that up let me introduce you to the fascinating world of technical analysis.
I am sure that you have heard a lot of definitions about technical analysis involving terms like Ichimoku Kinko Hyo, Heiken Ashi, Hrami and many other strange names.

The good news is that technical analysis is much simpler than that.
Look at the price chart to identify the beginning of the next trend.
As simple as that!

I remember once, I was running a seminar in Africa in a venue packed with 300 students when I asked for the definition.
After many false and complicated definitions, one of my students stood up, took the microphone, and said:

“Sir, Technical analysis is the study of the price chart to identify the direction of the market and, most importantly, the beginning of the new direction.”

What about any tools? I said.
Then he goes on to say. Sir, price is the best tool.

I couldn’t agree more.
Of course, I have to confess that at the beginning of my trading career, I went through a phase in that I experimented with lots of indicators.
The more indicators I used, the more I lost!

After reading many books and following many seminars, I realized that price is the BOSS!
This is the point when you feel relieved.
Yes, you feel free to search day and night for the best indicator that will give only profit and no losses.
Am I suggesting not to use any indicators?
As a beginner, you may need to attach a moving average and a momentum oscillator to boost your confidence.
But, if the volume is available for the financial instruments you are trading, it’s a must.
Volume confirms the direction of the market as well as its reversal.
It gives you a warning that the established trend is running out of steam or the beginning of the new trend has the potential to move further.