Realistic Trading & Investing Technical Analysis With Chart Examples: Understand Core Concepts; Price Action, Volume, Support, Resistance, & Trends

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ASIN ‏ : ‎ B08DQS5628
Publication date ‏ : ‎ July 26, 2020
Language ‏ : ‎ English
File size ‏ : ‎ 50217 KB
Text-to-Speech ‏ : ‎ Enabled
Screen Reader ‏ : ‎ Supported
Enhanced typesetting ‏ : ‎ Enabled
X-Ray ‏ : ‎ Not Enabled
Word Wise ‏ : ‎ Enabled
Print length ‏ : ‎ 132 pages
Page numbers source ISBN ‏ : ‎ B08DSVC92R

In the world of trading and investing, technical analysis plays a crucial role in making informed decisions and maximizing profits. By analyzing price action, volume, support, resistance, and trends, traders can gain valuable insights into market movements and make well-informed trading decisions.

Price Action:

Price action refers to the movement of a security’s price over a specific period of time. By analyzing price action, traders can identify patterns and trends that can help them predict future price movements. For example, a series of higher highs and higher lows may indicate an uptrend, while a series of lower highs and lower lows may indicate a downtrend.

Volume:

Volume refers to the number of shares or contracts traded in a security over a specific period of time. High volume often indicates increased interest in a security, while low volume may suggest a lack of interest. By analyzing volume, traders can confirm the validity of price movements and identify potential buying or selling opportunities.

Support and Resistance:

Support and resistance levels are key concepts in technical analysis. Support refers to a price level at which a security tends to stop falling and bounce back, while resistance refers to a price level at which a security tends to stop rising and pull back. By identifying support and resistance levels, traders can set entry and exit points for their trades and manage risk effectively.

Trends:

Trends are one of the most important concepts in technical analysis. By identifying trends, traders can determine the overall direction of a security’s price movement and make informed trading decisions. There are three main types of trends: uptrend, downtrend, and sideways trend. By following the trend and trading in the direction of the trend, traders can increase their chances of success.

To illustrate these core concepts, let’s take a look at a chart example:

In the chart below, we can see an uptrend in a security’s price movement. The security is making higher highs and higher lows, indicating a bullish trend. Traders can look for buying opportunities when the security pulls back to a support level and bounces back in the direction of the trend. By following the trend and using support and resistance levels to set entry and exit points, traders can maximize their profits and minimize their losses.

In conclusion, understanding core concepts such as price action, volume, support, resistance, and trends is essential for successful trading and investing. By analyzing these factors and using them to make informed decisions, traders can increase their chances of success in the market. It is important to remember that technical analysis is not an exact science and should be used in conjunction with other forms of analysis to make well-rounded trading decisions.
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