Technical Analysis for Beginners

Explore the market cycle model, identifying the primary trend—bullish or bearish—lasting 9 months to 2 years, with intermediate moves spanning 6–9 months and short-term moves 2–4 weeks.

Explore secular and primary trends, identify bull markets by higher tops and higher bottoms, and spot reversals through peak and trough patterns, considering rally magnitude and duration.

Dow theory identifies market's primary trend: higher highs and higher lows signal a bull trend, while lower highs and lower lows signal a bear trend, with volume confirming the trend.

Explore four chart types—line chart, bar chart, Japanese candlestick chart, and point and figure—and learn how each depicts price, opens, highs, lows, and closes, to identify trends and reversals.

Learn to navigate TrainingView, Investing.com, and Indian charting platforms, log in, and set time frames to compare daily, hourly, and weekly charts with indicators and drawing tools.

Draw trendlines by connecting ascending bottoms into a support line and descending tops into a resistance line, with at least two touches to reveal the trend, direction, and possible reversals.

Master practical trend line and channel drawing, identify breakouts with support and resistance, and use higher time frame charts to confirm trends and guide entry, hold, and exit decisions.

Explore moving averages, including SMA and EMA, and how fast and slow crossovers, golden cross, and death cross guide trading decisions with value zones and cross-confirmation from other indicators.

Learn how momentum measures price speed to assess trend strength, and use RSI and other momentum indicators alongside moving averages and trend lines to decide buy, sell, or hold.

Explore how the RSI relative strength index measures trend strength, signals overbought and oversold conditions, and identifies divergences to guide entry, exit, or hold decisions.

Learn to use MACD, a momentum indicator derived from the 12 and 26 period EMAs, with a 9-period signal, to identify crossovers and divergences for entry and exit alongside RSI.

Learn how stochastics gauge a current price position within a 14-day range using %K and %D, with overbought above 80 and oversold below 20, guiding buy, sell, or hold.

Bollinger bands plot a price, a 20-day sma mean, and two standard deviations to measure volatility, indicate mean reversion, and signal overbought or oversold conditions for trading.

Understand how the directional movement index (DMI) and ADX measure price strength and direction, computing positive and negative DM, true range, and smoothed values to signal crossovers.

Apply trend lines, moving averages and momentum tools like RSI, MACD, DMI, stochastic and Bollinger bands to analyze trend, volatility, overbought/oversold conditions, and entry exit signals.

Master candlestick charting and see single candle patterns like doji, dragonfly doji, gravestone doji, and shooting star. Understand open, high, low, close and wick to spot short-term reversals.

Explore dual candlestick patterns such as engulfing bullish, engulfing bearish, harami bullish, harami bearish, piercing line, and dark cloud cover, and learn how these patterns signal trend reversals or consolidations.

Explore three candlestick reversal patterns—three white soldiers, three black crows, morning star, and evening star—each requiring three candles and confirming a bullish or bearish reversal.

Learn to identify trends and reversals with chart types, trend lines, and moving averages, and use momentum indicators and candlestick patterns to time entry, hold, and exit decisions.

Explore how volume drives price, with volume leading trends, and apply volume indicators like OBV, VWAP, Chaikin Money Flow, Money Flow Index, and Arms Index to spot breakouts and reversals.

Explore how human pattern recognition underpins technical analysis and learn to identify rectangle patterns with support and resistance, determining continuation or reversal signals.

Learn how ascending, descending, and symmetrical triangles form from resistance and support lines, how breakouts signal continuations or reversals, and how to measure targets from the apex.

Learn to identify rounding bottom saucer reversals, cup and handle continuations, and flag and pennant patterns, using neckline break and measuring targets to predict price moves.

Identify and mitigate investment risk with technical analysis, applying stop losses and position sizing. Use trailing stops and value at risk to guide risk limits.

Master risk management with ATR-based, trend-line, and moving-average stop losses, time and trailing stops, and gap analysis to protect capital and guide position sizing using 2% and 6% rules.

Apply position sizing using a 2% risk per trade and a 6% portfolio limit, calculating max shares with ATR and stop loss multipliers to manage risk.