Now that we understand how Technical Analysis may help us identify the prevailing trend and the beginning of the new trend in the opposite direction, let’s dive into more detail and, more specifically, the principles of technical analysis.

Principle number 1:
Prices move in trends.
This is very easy to explain and understand.
Just a quick look at the price chart and one can spot a series of higher tops and bottoms signifying an uptrend or a series of lower tops and bottoms signifying a downtrend.

Show an uptrend and a downtrend.
After all, technical analysis and trends go hand in hand.
The goal of a technical analyst is to identify the development of the trend in its early stages and trade in that direction.
I hope it's clear.