Technical Analysis Basics: Tools and Indicators

Technical analysis is a method used by traders to forecast stock price movements based on historical data, primarily price and volume. This article introduces essential tools like moving averages, relative strength index (RSI), and candlestick patterns, offering insights into how these indicators help predict price trends and reversals. Ideal for beginners, this guide helps investors understand the basics of reading stock charts, identifying entry and exit points, and managing risks. With practical examples and simple explanations, this article demystifies technical analysis and shows readers how it can complement fundamental analysis.