Trading stocks can be very overwhelming for the average investor. LearnToTradeTheMarket.com has some great advice when it comes to learning what technical analysis is and how to use it. Technical analysis is the study of price movement and action of the market over time and is the ultimate leading indicator of what price might do next.
- Technical analysis is the study of the price movement or price action of a market over time.
- Price action allows us to find repeatable patterns, place trades, manage risk and profit objectives in a very straight-forward and logical way.
- Price action analysis is a form of technical analysis that frees the mind of clutter and allows one to focus on reading the charts and price actions simply by listening to the ‘language’ of the market.
"Technical analysis is perhaps the simplest and ‘easiest’ aspect of trading, and likely due to that, it’s very common for traders to over-complicate it by covering their charts in unnecessary indicators. Essentially, all you are doing when you add indicators on top of price action is hiding the main thing you should be analyzing; the price data."
Originally published at What Is Technical Analysis and How Do We Trade with It?