What is technical analysis (TA)
This is a method of forecasting prices based on the study of charts, historical data, and patterns. TA helps to identify trends, entry/exit points, and assess the strength of price movements.
Where to start
Master the charts
linear - show the closing price over a period;
candlestick — show opening, closing, high, and low prices (green candles — rise, red — fall);
histograms — visualize trading volume.
Study key levels
support — a level where the price often stops and reverses upwards;
resistance — a level where the price slows down or bounces downwards.
These zones help identify potential reversal points.
Master indicators (start with 1–2):
moving averages (MA) — show the average price over a period, help identify the trend;
RSI (relative strength index) — determines overbought or oversold conditions of an asset (values above 70 — overbought, below 30 — oversold);
MACD — signals a trend change through line crossings.
Analyze graphic patterns
reversal ('head and shoulders', 'double bottom');
continuation patterns (triangles, rectangles);
breakout patterns (symmetrical triangle).
Practical steps
Choose an asset (e.g., BTC/USDT) and a timeframe (1h or 4h to start).
Mark support/resistance levels on the chart.
Add 1–2 indicators (e.g., MA and RSI).
Look for patterns and signals (e.g., MA + RSI crossover in the overbought zone).
Test hypotheses on a demo account or with small amounts.
Important rules
Risk management: do not invest more than 1–2% of your deposit in one trade.
Discipline: stick to the plan, do not succumb to emotions.
Learning: analyze mistakes, keep a trading journal.
Context: consider news and the overall market (fundamental analysis).
Where to find information
Official Binance resources (educational materials, webinars).
Charting platforms (TradingView).
Trader community (forums, Telegram channels).
Remember:
Technical analysis — a tool, not a guarantee of profit. Start small, test strategies, and gradually complicate your approach. Success comes with experience and discipline!
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