Reading the Charts
Technical analysis uses historical price and volume data to predict future price movements.
Common Chart Patterns
- Head and Shoulders: Reversal pattern indicating trend change
- Double Top/Bottom: Price tests a level twice before reversing
- Triangles: Consolidation patterns that precede breakouts
Key Indicators
Moving averages, RSI, and MACD are among the most widely used technical indicators. Each provides different insights into price momentum and trend direction.