Technical analysis is the study of price and volume movement to anticipate future trends. A beginner doesn't need to master everything — a few core tools are enough.

1. The trend is your friend

An uptrend is a series of higher highs and higher lows; a downtrend is the opposite. The classic rule: "trade in the direction of the trend." Identifying the trend first avoids many mistakes.

2. Support and resistance

Support is a price level where the price tends to bounce up; resistance is a level where it tends to turn down. Breaking resistance on strong volume is bullish; breaking support is bearish.

3. Moving averages

A moving average smooths price to reveal the trend. The 50- and 200-day averages are common: price trading above the 200-day average is considered positive over the long term.

4. The Relative Strength Index (RSI)

RSI measures price momentum on a 0–100 scale. Above 70 is considered overbought (may pull back), below 30 oversold (may bounce). But it's a supporting tool, not a final decision.

5. Volume confirms the move

Price moves on high volume are more reliable. A rise on weak volume can be fragile.

How to start

Apply these concepts on the stock analysis pages, and review the glossary. egxbot provides full automated technical analysis (patterns, SMC, targets and stop-loss) for every stock.