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Even if you are already trading, if you are new to investing knowing your way around a financial chart may feel like trying to read a foreign language. The screen is a large cluttered clutter of red and green bars, zig-zagged lines, and confusing graphs. It’s confusing.
But what if you could learn the basic grammar of that language?
That’s what technical analysis is. It’s not a magic crystal ball that guarantees the future. It’s a skill that allows you to assess past behaviors in the market to look for patterns and likelihoods. It’s about making informed guesses, not blind bets.
This guide is your “ Rosetta Stone” for financial charts. We’ll break down the absolute essentials of technical analysis into simple, easy-to-understand concepts. This is your first step in learning how to read the story the market is telling you.
Technical analysis is studying past price action and volume to predict future price action.