Basics of Technical Analysis - Classic Indicators - Video 1

Posted by admin in Basics, Lessons, Trading on Nov 6th, 2009 | no responses

This is a video about the Basics of the Technical Analysis and How to Understand the Classic Indicators in Technical Analyis. This is an excellent video for people who want to trade in the stock markets for short to medium term gains. Traders need to understand the technical charts, trends and mass psychology to profit from the market movements.

In this video, the author talks about the topics such as History of Technical Analysis, Foundation of Technical Analysis, Technical Setups in the Markets, Psychological Aspects and Discipline for Traders etc.

Technical Analysis is founded on three basic Principles. They are:

Discounting mechanism - Every known piece of information is already priced into the market.
Study of Mass Psychology -Market move based on mass psychology and may not always reflect the underlying strength or weaknesses.
Markets always are trending or consolidating - Trends and Consolidations basically defines the ranges in which markets move for a certain period of time.

There are basic things that drive the technical aspects and stock market movements. They are

Three main movements - primary, secondary, minor trends.
Market will always move in action and reaction.
Markets do tend to trend. A trending is defined by higher high and lower high - lower high and lower low for up and lower trends