An introduction to technical analysis

What is technical analysis?

Technical analysis is a method for evaluating securities based on past market activity. Technical analists use this method usually to look for trends that they can start trading in. They believe that the past price movement and volume (the total amount of transaction) are good indicators for forecasting the future price movement.

Why are people using technical analysis?

People use technical analysis tools for many reasons. For example identifying trends for a short-term trade or for identifying a price movement and so on.
We at 101trading use technical analysis mostly to decide when to buy and when to sell, when we are in for swing trades or short term trades and long term investments.

When to use technical analysis?

We at 101trading always use technical analysis and sometimes-fundamental analysis as well.
Our recommendation is always use technical analysis before you enter a trade.

How to use technical analysis?

The technical analysis area has many tools that you can use on how to read the charts and make profit from it with your trading.
It is impossible for us to cover all the tools. On this website we will explain only the tools that we use ourselves. But before you got to the tools page, it is handy to read and understand the basics of the charts first.

Have fun with learning and making profits. If you have any questions about the technical analysis, please submit your questions in the comment bar and we will answer it as soon as possible.