Technical Analysis
Analysis of price and volume through charts to predict future movements.
Technical analysis (TA) is an asset assessment methodology based solely on historical price and volume data — without considering fundamental value.
Basic premise: all information is already incorporated in the price. Patterns that occurred in the past repeat because human psychology remains the same.
Main tools:
•Support and resistance — horizontal levels
•Trend lines — diagonal levels tracking direction
•Moving averages (EMA, SMA) — smoothed averages
•Oscillators (RSI, MACD) — measure momentum
•Chart patterns (head & shoulders, triangle, wedge)
•Candlestick patterns (doji, hammer, engulfing)
TA limitations:
•Not science — probabilistic, not deterministic
•Self-fulfilling prophecy — pattern works because many follow it
•TA on crypto influenced by whale manipulation and news
•Combine with fundamental analysis and on-chain analysis