The basics of technical analysis
Technical analysis can help you make sense of the way investor behaviour drives market prices. In this course we show you how to start using charts to forecast which way a market might move – helping you spot potential trading opportunities.
You’ll get to know the different types of chart available and how they work. And you’ll learn to identify some key chart patterns and understand their implications.
We’ll also introduce you to some of the most popular technical indicators – tools you can use to derive trading signals from market price data – and show you how to apply them.
Introduction to technical analysis3 min
Types of charts6 min
Support and resistance4 min
Breakouts and fakeouts4 min
Trends and channels4 min
Basic chart patterns: part one5 min
Basic chart patterns: part two6 min
Candlestick patterns7 min
Moving averages5 min
Using moving averages6 min
Choosing your analysis tools5 min
Example lesson: understanding support and resistance
In this course you’ll find exercises, charts and illustrations demonstrating how technical analysis can highlight potential opportunities to go long or short. To give you a flavour of what to expect, here’s an extract explaining the concepts of support and resistance:
The lines marked 1 and 2 below each represent a support or resistance level. Which is which?
A. Line 1 is support, line 2 is resistance
B. Line 1 is resistance, line 2 is support
Answer is B.
Resistance is the ceiling that the price struggles to break through. Support is the floor where the price tends to stop declining.