Now, this is going to be a lot of fun as we are going to talk about Technical Analysis.
This is my favourite trading approach when it comes to the financial markets. (You probably know this by now!)
I devoted few years of my life mastering this approach and I find it extremely fascinating as it combines both science and art!
Yes, this is how I like to view technical analysis.
Science, because of all these statistical tools known as oscillators and indicators and art because of the chart patterns.
But what is technical analysis?
Well, Technical Analysis is the study of the price chart for the purpose of identifying the direction of the market at an early stage.
So, what technical analysts do, is look at the price chart to identify the beginning of the next trend at an early stage of its development.
How do we do that?
Three ways:
- Identify a reversal chart pattern or
- With the use of oscillators and indicators or
- A hybrid system using both chart patterns and indicators and oscillators
Stay tuned for more.