Today, I would like to teach you some basic technical analysis (TA).

We'll start by exploring the core concepts that underpin this method. TA is not just about charts; it's about understanding the market's heartbeat.

Diving into the Core of Technical Analysis

Before we dive into specific concepts, it's crucial to get familiar with the broader topics of TA:

Supply and Demand or Support and Resistance
Market Participants
Efficiency and Inefficiency of Markets
Risk and Reward
Liquidity
Volatility
Trend

Exploring all of them in a single message would be too long. So, let's cover the first two fundamental concepts now, and we'll touch on the others in the future.

Supply & Demand or Support & Resistance

At the heart of price movement lies the balance between supply and demand. When demand surpasses supply, prices tend to rise. Conversely, prices generally fall when there's more supply than demand.

This dynamic is framed within the 'support' and 'resistance' levels in TA. Support is a price point where an asset often stops falling because of increased buying interest. While resistance is a level where it tends to stop rising due to increased selling.

Understanding these levels helps us predict where the price might head next.

Market Participants

All markets are shaped by their participants, ranging from individual retail traders to large institutional investors, along with market makers and high-frequency traders.

Each group influences the market in unique ways. For example, retail traders might fuel short-term trends, whereas institutional decisions often indicate longer-term market movements.

Recognizing the roles and influences of these participants is essential for understanding market behavior.

As we explore these key aspects of Technical Analysis, remember that this is just a basic overview and that more information can be found inside my trading circle on Discord.

Want a course that breaks down these principles in detail and dives deeper? Then let me know on Instagram.

Stay tuned for more updates, and make sure you're part of the WxCafé to get the latest information.

My team and I are committed to empowering you with the knowledge and tools needed to navigate trading confidently.

Until next time, keep analyzing and stay ahead in the market!

Ewen

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