What Is Technical Analysis?
Key Takeaways
Technical analysis (TA) is a method that relies on price history and volume to forecast market trends.
TA can be done with simple support and resistance levels or with a combination of charting indicators like moving averages, RSI, MACD, and Bollinger Bands.
Trading signals can help us identify buying and selling opportunities, but TA indicators can also produce false signals, especially in lower time frames or low-liquidity markets.
It’s important to do risk management and cross-confirmation with other methods to reduce risks.
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