#technical analysis basics

Hey streaming fanatics turned traders! Ever notice how your chart analysis skills improved after watching 47 episodes of your favorite show in one sitting? No? Let me explain this hilarious connection between your Netflix addiction and trading success!

Remember how you predicted that plot twist in your favorite series because you noticed all the subtle hints? That's exactly what technical analysis is - except instead of predicting who ends up with who, you're predicting where prices might go. And trust me, both can be equally dramatic!

Think about your favorite crime series. You know how detectives look for patterns to solve cases? Well, traders are basically market detectives! Instead of looking for clues at a crime scene, we're searching for clues in our charts. Though sometimes the market commits crimes against our portfolio, but that's another story...

The best part is how similar chart patterns are to TV show formulas. You've got your reversal patterns (like season finales), continuation patterns (like mid-season episodes), and those false breakouts (like clickbait episode titles that promise more than they deliver).

And don't even get me started on double tops and bottoms - they're like those classic "evil twin" episodes. Just when you think you know what's happening, the market pulls a soap opera move on you!

Concluding paragraph: So next time someone tells you you're watching too much TV, just tell them you're actually studying advanced pattern recognition for your trading career! And remember, just like you wouldn't skip to the last episode of a series, don't rush your trading journey. Enjoy the show, learn the patterns, and maybe keep some popcorn handy for those volatile market days!

Technical Indicators are simple mathematical formulas derived from price and volume. But a novice trader never looks at them like that. For a beginner, they hold the promise of great riches. A few simple tweaks and the indicators are bound to give them the financial freedom they desired. But we all know how it pans out in the end...

It's not how an indicator is calculated that holds the value, but how a trader uses and interprets it that will decide the ultimate success... But the topic of technical indicators always makes for an interesting read, read my view on them...

Disclaimer: I have spent the better part of my trading career running after these indicators, tweaking parameters, jumping from one indicator to another, basically, searching for the holy grail of trading, luckily I discovered nothing... What are the technical indicators? As stated earlier, they are mathematical formulas applied to the two basic elements of markets, viz, price and volume. The objective is to extract some hidden property of price and volume movements which can give us deeper insights into their behaviour. Once these behaviours and patterns are extracted, it is just a matter of monitoring these indicators and take the profitable trades... The reality is slightly different. The mathematical formula part of the equation is correct but you cannot make money by designing the best indicator, but by using the indicator in the best possible way...

Technical analysis has been a cornerstone of my journey in the markets, which spans over a decade now. I have learnt a lot over the years sometimes by voluntarily by studying books, videos and courses and sometimes involuntarily when markets gave me a slap on the wrists for being complacent. But this journey has been great and technical analysis has now become my life. I am crazy about it and thought it would be nice to share my views on this huge topic... What is technical analysis? In simple words, it is the study of prices, how they behave and what they indicate about what the market is doing right now. Some people boast of having predictive powers and go on giving targets and predicting future market developments. The funny part is they say technical analysis of some sort helps them do this, but I completely disagree with them and warn you to stay away from such charlatans... All technical analysis can do is give you the current market situation, who is winning right now buyers or sellers, that's all. And this also is possible because prices are nothing but traders behaviours reflected in their actions of buying and selling. So technical analysis, notwithstanding all the maths involved in it, at the end of the day is the analysis of human behaviour. Price is just a proxy...