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Technical Analysis
Technical analysis is a method of analyzing financial markets that focuses on studying price movements and trading volume. It is based on the belief that historical price data can provide clues about future price movements.
Technical analysis examines past price movements using charts, indicators, and other statistical tools. It is used to identify trends, support and resistance levels, momentum, and other trading signals.
One of the fundamental principles of technical analysis is that market prices reflect all available information. Therefore, technical analysts focus on price movements rather than company fundamentals or economic factors, as in fundamental analysis.
Some basic tools used in technical analysis include:
Charts: Various types of charts, such as line charts, bar charts, and candlestick charts, are used to visualize price movements. These charts are used to identify trends, support and resistance levels, and other important price levels.
Indicators: There are many indicators used in technical analysis. These indicators are used to determine the momentum of price movements, the strength of a trend, overbought or oversold conditions, and other trading signals. Examples of indicators include moving averages, Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD).
Patterns: Price patterns also play a significant role in technical analysis. These patterns are based on the idea that similar patterns in the past can provide insights into future price movements. Examples of patterns include head and shoulders, double bottom, and triangles.
The goal of technical analysis is to predict future price movements by analyzing past price movements. However, technical analysis may not always provide accurate results and can overlook other market factors. Therefore, it is often used in conjunction with other analysis methods.
In conclusion, technical analysis is a method of analyzing financial markets by studying price movements and trading volume. It involves the use of charts, indicators, and patterns to analyze past price data and predict future price movements. However, it is important to note that technical analysis may not always be accurate and should be used in conjunction with other analysis methods.
Technical analysis; It is an analysis method made by using indicators such as price, volume and indicators, assuming that past price movements will be repeated in the future and will cause similar movements. According to the logic of technical analysis, every factor that can affect price movements has an impact on prices.
Each price movement serves as a reference for future price movements. At the same time, since price movements will repeat themselves, it is possible to see the same price movement at different times. For this reason, technical analysis methods are important for us to understand the language of the parity we are working on.
Technical analysis has divided investors into two. While some investors argue that only technical analysis is sufficient to predict the next price movements, others argue that simply tracking price movements is not sufficient for accurate market analysis.
It is the common opinion of all investors that technical analysis analyzes the market only through price movements, apart from the economic, political and social triangle. In fact, he says, the power and basic reasons that create the movements are reflected in the graphs as a trend. The reflection of supply or demand somewhere shows itself in the graphs. According to Technical Analysis, these data are reflected as trends and formations. The technical analyst, on the other hand, makes inferences from this situation and says that something will happen, is happening or that he sees it happening.
It tells you the prices with graphics and price movements while they are in the process of formation. Each price fluctuation definitely has a meaning and a basic reason, but the technique does not look at these reasons, it tries to determine what the current situation in the actual Technical Analysis means, the status of the trend and the next step of the trend with a high percentage.
For this reason, Technical Analysis always looks for what Fundamental Analysis wants to do in the movements and trends of the lines (charts) and to benefit from that trend movement at that moment. It does not question the price movement or say “why did it rise, why did it fall?” by being in the trend. It just tries to take advantage of the price movement.
All of the technical analyst’s attention is focused on price movements, trends, supply and demand of the stock, and charts. Price movements, trends and performances are important, not the fundamental reasons of the company (stock market), commodity (real sector), country (parities). Technical Analysis actually tells what will happen with a higher percentage than other research methods.