Technical analysis is a method of assessing financial instruments based on the study of historical price and volume data. It involves using charts, indicators, and patterns to predict future price movements. Key tools of technical analysis include trend lines, support and resistance levels, as well as various indicators like RSI, MACD, and moving averages.
To effectively use technical analysis, start by studying charts and identifying major trends. Pay attention to key levels where prices often bounce. Use indicators to confirm your observations and make decisions. However, remember that technical analysis does not provide 100% guarantees, and it is essential to combine it with other analysis methods, such as fundamental analysis.