Thread: Simple explanation of technical analysis

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  1. #1

    Default Simple explanation of technical analysis

    I used to find the explanation of technical analysis in books difficult to grasp as there were many usages of jargons and formulas. Like the explanation of Indicators was riddled with formulas and technical terms. analyzedstock[.]com explains everything in a very simple manner with easy explanation of all topics of technical anlaysis.
  2. #2


    In simple words:
    technical analysis look at the past price trends and looks for the patterns between these trends and data (price, volume and etc). In most cases data are represented by indicators that are based on these data. When you finds the patterns, technical analysis assumes that in the future we may see these pattern repeated and this knowledge helps to predict future trend development. As an example, if in the past in most cases we see price declines when RSI drops below 70% after being above it, then when we see it next time the odds are good we will see a continuation of a decline.

    First step, I would say, is that you need to decide what you gong to trade - forex, futures, stocks, ETFs and etc. Depending on the choice you may need different analysis to perform.

    Then you need to find out what time frame you want to trade. Again it make difference what analysis to use. If you decide trade stocks in long term you may need add fundamental analysis to your technical analysis. On the other hand, if you plan to make several trade a day, fundamentals will not help you a lot.
  3. #3


    when you need what and in what time-frame to trade you may start your research on technical indicators. There more than 150 different indicators and many of them repeat each other. Some of them may not work for your stocks or whatever you plan to trade) and or for your time-frame.
    You may find simple explanation of indicators and how to use them at
    Technical Analysis | Indicators | stock charts
    again,there are too many of them and it could be difficult to find something that would work for you.

    Get as some free trials with chart providers and test some indicators. Also when you are on free trial, ask customer support questions. If they want to keep you they will help you in your research.

    I do not want to give you a lot of info as it may confuse and scare you. When you know more above what you want, you may ask more specific questions.
  4. #4


    Things can appear easy until you trade with your own money. Then you wish you had paid more attention to the training early one. I have found the individual training offered by the experts at Delemont Capital to be far better than watching training videos. They customized the training to suit my needs.
  5. #5


    I say to you training and support are so important and that's why i am happy with delemont capital since they help me to understand and learn so much. now experts at delemont capital help me to improve my trading and help me to make some profit

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