Technical Analysis Basics

What a candlestick says

Each candle records four numbers: open, high, low, close. The body is open-to-close; the wicks are the extremes. A long upper wick on a green candle says buyers pushed price up but couldn't hold it. Reading candles is reading the rhythm of buying and selling pressure.

Support and resistance

Support is a price area where buyers have historically stepped in. Resistance is the mirror image — where sellers have. They are zones, not lines. Their value is in where you place protective orders, not in predicting reversals.

Trend, range, transition

Markets spend most of their time in one of three states: trending, ranging, or transitioning between the two. Most strategy failures come from applying trend tactics in a range, or range tactics in a trend.

Indicators worth knowing

• Moving averages — smoothed reference lines for trend direction.
• RSI — relative strength index, helpful for spotting momentum extremes.
• ATR — average true range, useful for sizing stops to actual volatility.
• Volume — confirms or undermines moves; especially useful at breakouts.

Beyond these, most indicators repackage the same information. More indicators do not mean more insight.

Putting it together

Combine context (trend or range), structure (support and resistance), and one or two indicators that fit your style. Practice on a clean chart before adding tools. Some readers experiment across platforms like BLUMBERG global to compare charting workflows — useful as long as the analysis stays the same.

Educational disclaimer: this article is for learning purposes only and is not financial advice.