Technical Analysis Map

🗺️ Technical Analysis Map

 

What is Technical Analysis?

Technical Analysis aims to forecast the future price movements of all publicly traded financial assets. This forecasting is based on historical price movements and focuses on two key aspects: (i) the current price and (ii) past price behavior. While technical analysis cannot predict the future with certainty, it can help investors build a probability framework outlining potential future price scenarios. More specifically, technical analysis may:

(1) Help investors optimize their investment decisions by buying oversold assets and selling overbought ones

(2) Assist investors in refining their entry and exit points for each position they open or close

Technical analysis is applicable to all publicly traded financial instruments, including Forex, commodities, stocks, indices, and bonds. When combined with fundamental analysis, it forms a comprehensive approach to investment analysis.

 

Technical Analysis Basics

Technical analysis, based on Dow Theory, consists of two fundamental assumptions:

✅ Price discounts everything

✅ The price movement of publicly traded financial assets is not random

Tony Plummer, in his book The Psychology of Technical Analysis, wrote: “Technical analysts know the price of everything, but the value of nothing.” This is partly true, which is why technical analysis should always be used in conjunction with fundamental analysis.

 

 

Technical Analysis Map

Here is a map with almost all important technical analysis tools.

(1) Charts

Charts

 

(2) Patterns

Chart Patterns
  • Head and shoulders
  • Cup and handle
  • Double top / Double Bottom
  • Rounding Top / Rounding Bottom
  • Triple top / Triple bottom
  • Triangles
  • Flag and pennant
  • Gap
  • Price channels
  • Wedge pattern

» Find more about the Major Chart Patterns

Candlestick Patterns
  • Doji, » more about Doji
  • Hammer / Hanging man,
  • Marubozu
  • Shooting star
  • Morning star / Evening Star
  • Spinning top
  • Three Black Crows
  • Three white soldiers
  • Railway Tracks
  • Hikkake pattern
  • Harami

 

(3) Indicators

In technical analysis (TA), indicators are formulas derived from past price, volume, or open interest data of a financial asset (such as stocks, forex, or cryptocurrencies). They assist traders and analysts in spotting market trends, measuring momentum, gauging volatility, and detecting possible reversal points.

Trend

Momentum

Volatility

Volume
  • Ease of movement (EMV)
  • Force index (FI)
  • Accumulation/distribution line
  • Money flow index (MFI)
  • On-balance volume (OBV)
  • Put/call ratio (PCR)
  • Volume–price trend (VPT)
  • Negative volume index (NVI)

 

Other
  • Commodity channel index (CCI)
  • Advance–decline line (ADL)
  • Keltner channel
  • McClellan oscillator
  • Arms Index (TRIN)
  • Coppock curve
  • Ulcer Index

 

(4) Support and Resistance

Support

and Resistance

 

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 🔗 Read More: » What is Stochastic Oscillator | » What is Williams %R | » What is Pivot Point | » What is RSI | » What is MACD  | » What are Round Numbers? | » What is the Fibonacci Retracement

 

 

 

Technical Analysis Map

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