Technical analysis is a strategy based on market behavior. Instead of focusing on financial statements, it examines past data.
**Key elements of technical analysis**
– **Charts:** Ways to track momentum.
– **Trends:** Identify direction.
– **Support and bloomsbury publishing stock resistance:** Price levels where stocks bounce or reverse.
**Popular indicators**
– Show average price trends.
– Relative Strength Index (RSI).
– MACD (Moving Average Convergence Divergence).
– Highlight volatility.
**Limitations**
– Purely market-driven.
– Indicators lag behind price.
**Conclusion**
Technical analysis is helpful when combined with fundamentals. Learning candlesticks, moving averages, RSI, and MACD allows investors to time the market better.
