What is Technical Analysis and its Basics ?

Technical analysis is the study of historical price movements and their relationships to future price movements. The goal is to identify patterns in these movements that can be used to predict future prices.

Technical analysis is often used in conjunction with fundamental analysis, which looks at factors such as a company's financial health, management style, and other factors that help determine how stock prices will move.

Technical analysis is a form of charting that helps traders determine the price movement of an asset. It can be used to determine whether a stock is going up or down, and it also helps traders determine when to buy and sell.

Technical analysis is based on two key principles: trend following and Elliott Wave Theory. Trend following says that if you look at historical data of a specific instrument's price movements, there will be a pattern that repeats itself over time. For example, if you look at the price history for Apple Inc., you will see that there are certain times where the stock drops sharply after reaching an all-time high these are called "bear markets" or corrections but then it rebounds strongly in response to rising demand from investors who want to buy shares at low prices. This trend follows bear markets back into bull markets (when investors are desperate to get rid of their shares). This means that if you want to predict future movements in this stock's price, you should look at its past performance during bear markets so that you know what kind of buy/sell signals might appear during those times; then you can use those signals as guides during times when bears appear again (as well as other times when bulls appear).

Technical analysis is a way to predict future price movements by analyzing past price movements. It involves looking at the price movement of an asset and trying to predict what will happen next.

The most common type of technical analysis is price charting, which involves drawing a line on a chart that shows where an asset's price has been over time. If you do this for enough different assets, you can get an idea of how prices are moving over time and which direction they tend to move in. You can then use this information when making decisions about whether or not it's worth buying or selling an asset.