The Only Technical Analysis Video You Will Ever Need

The Only Technical Analysis Video You Will Ever Need
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Technical Analysis

Your ability to use technical analysis for making sound trading decisions and ultimately profiting in any market is crucial. It’s something you cannot do without, and if you don’t understand certain parts of technical analysis or don’t know how to use them correctly, that might be a significant reason for either losing money as a trader or struggling to create profits over time. In this video, I aim to cover everything you need to know about technical analysis, from candlestick charts to indicators, support and resistance, trends, entry patterns, and how to set stops and targets.

I’ll be sharing all the knowledge about technical analysis that I’ve gained over the past decade of my trading career in this video. Since I’m providing this information for free, it would be fantastic if you could hit that like button to support the YouTube algorithm. If you’re new, go ahead and click the subscribe button because we release content like this every week. If you’re already subscribed, welcome back. You know the drill. I’ll see you after the intro and disclaimer.

I’ll explain technical analysis slowly so that anyone who’s new can easily understand. Technical analysis involves studying historic price movements to make accurate decisions about what the market might do next. Every aspect of technical analysis is based on price. Think about a candlestick chart – it’s a visual representation of price itself. Trends, support and resistance, even indicators, are all based on price. They are formulas applied to historic price data to plot the indicator on your chart. Since the foundation of all technical analysis is price, let’s start by looking at candlestick charts.

What you see on the screen is a candlestick chart, and whether you’re trading forex, stocks, or crypto, candlestick charts are the foundation of technical analysis. Before we delve into the entire candlestick chart, let’s first understand what a single candlestick represents. I’ll provide timestamps for the different topics we’ll cover in this video so you can skip ahead if you’re already familiar with certain aspects of technical analysis.

Specific Period

Now, let’s focus on single candles. Each candle represents price movement over a specific period, depending on the chosen time frame. Time frames like daily, one hour, or five minutes dictate how much price movement a candle represents. A candlestick has two parts: a body (colored in green or red) and wicks above and below the body.

A green candle represents a period where the price closed above where it opened. The open is at the bottom of the body, the high is the highest point reached during that period, the low is the lowest point, and the close is where the candle closed after that time period. Conversely, a red candle represents a period where the price closed below where it opened. The open is at the top of the body, and the rest of the elements are the same.

Let’s keep it simple. If we’re on a five-minute chart and a candle starts at 12 o’clock, the open is at 12 o’clock, the high and low represent the highest and lowest points in the next five minutes, and the close is at 12:05. The candle encapsulates all the price action between 12 and 12:05. The only difference on other time frames is the duration of the time period. If it’s a one-hour chart, the candle covers price action over one hour.

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