Technical Analysis Basics

Technical analysis helps you organize price action into a plan. This guide focuses on the highest-signal basics: trend, levels, and simple confirmation.

Table of contents

  1. Trend structure
  2. Support and resistance
  3. Candlesticks
  4. Common indicators
  5. A simple workflow

1) Trend structure

An uptrend is higher highs and higher lows. A downtrend is lower highs and lower lows. Trade selection becomes easier when you align with the dominant trend.

2) Support and resistance

  • Support: an area where buyers previously stepped in.
  • Resistance: an area where sellers previously stepped in.
  • Treat levels as zones, not single lines.

3) Candlesticks

Candlesticks summarize open, high, low, and close. Use them for context, not as magic signals. Look for strong closes and rejection near key levels.

4) Common indicators

Moving averages

Useful for trend direction and dynamic support/resistance. Avoid stacking too many.

RSI

Better for momentum and divergence than for “overbought/oversold” triggers.

5) A simple workflow

  1. Start on a higher timeframe to mark trend and major levels.
  2. Drop to an entry timeframe and wait for price to reach a level.
  3. Use a simple confirmation (rejection + structure) and define risk.

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