What Is Technical Analysis and How Do We Trade with It?

Technical analysis is the study of the price movement or price action of a market over time. Traders make use of price charts and various technical indicators that come with those charts to perform their technical analysis.

However, it is my strong belief that traders need only analyze a market’s price action for their technical analysis. Not only is the price action on a chart the purest and cleanest view of that market, but all indicators and other technical analysis studies are based on price action anyways. So, it should go without saying that when we analyze a chart’s price action without added indicators, we are analyzing the most pertinent and clearest view of that market. Anything else is simply a derivative of price action and only works to add unnecessary variables that a trader must make sense out of.... Continue Reading...