What is technical analysis?
Technical analysis studies market data such as price and volume to describe trends, patterns and momentum. It differs from analysing a company’s financial statements or an economy’s underlying conditions. A chart can organise observations, but an interpretation remains uncertain.
Stock technical analysis and share technical analysis refer to the same broad practice applied to shares. A stock market is the setting in which shares trade; a stock chart is only one view of that activity. Always note the exchange, price adjustments, timeframe and data source before comparing charts.
Tools and indicators: start with a question
A charting tool displays the data. An indicator calculates a value from it. Before adding technical-analysis indicators, write down the question: am I describing the average price, recent momentum or the range of movement? Several indicators calculated from the same prices are not automatically independent evidence.
A simple moving average takes the arithmetic mean over a chosen number of observations. As a new value arrives, the oldest leaves the window. It smooths data but necessarily reflects the selected past observations.
Closes of 100, 102, 101, 103 and 104 give a five-period average of 102. If the next close is 105, the new average uses 102, 101, 103, 104 and 105: 103. The calculation summarises those closes; it does not establish the next price.
The Relative Strength Index, or RSI, is a momentum oscillator on a 0–100 scale. It compares recent upward and downward changes. Conventional high and low thresholds are interpretive conventions, not instructions that a price must reverse. Record the lookback setting and test how a different setting changes the description.
Chart patterns and candlestick patterns
A candlestick summarises one interval’s open, high, low and close. Candlestick patterns compare one or a few such shapes. Broader chart patterns describe a sequence across many intervals. In either case, define the shape and the preceding movement before assigning a name.
Start with our illustrated candlestick pattern guide. To study a proposed reversal, hide future candles, write down the interpretation, then reveal the next period. Keep a record of failures. An attractive historical shape is not evidence of a tested trading strategy.
Gold, silver, oil, Bitcoin and stock charts
The arithmetic of an average can be applied to many price series. The meaning of the series still matters. A gold-price chart, an oil futures chart and a company share chart are not interchangeable instruments. Record the exact symbol, provider, quote currency, unit, contract and session before interpreting any line.
| Study | Clarify first |
|---|---|
| Gold / XAUUSD | Spot reference, CFD or other contract? |
| Silver | Quote unit and actual traded product? |
| Oil | Benchmark and contract month? |
| Bitcoin / BTC / crypto | Exchange, pair and spot or derivative? |
| Stocks / shares | Exchange and adjusted or raw prices? |
For XAUUSD technical analysis, first check the provider’s definition of that symbol and its gold-versus-US-dollar quote. “Trading gold forex” is often used informally; confirm the actual contract rather than assuming it has the same terms as a currency pair. For BTC technical analysis, compare like-for-like data from the same venue and quote currency.
This is a method for studying historical charts. It provides no live gold, silver, oil or Bitcoin signal, current price target or recommendation. A forecast copied from another instrument or date cannot substitute for identifying the data you are viewing.
A free introductory learning path
If you are looking for a technical-analysis course, begin with this short sequence of free lessons. It is a self-study introduction, with no certificate or paid enrollment attached. Forex Vision’s wider education programme is still being prepared.
- Read how a candle records price.
- Label the five shapes in the pattern notebook.
- Calculate the moving-average example above by hand.
- Compare day and swing timeframes.
- Keep a paper journal with stated costs and failed examples.
At the end, you should be able to explain a chart observation, its calculation and what it leaves unknown. That is a learning objective, not a promise of trading performance.
Keep learning
Explore the free learning library or join the education launch waitlist. These guides are general education, not personalised advice. Trading involves risk and returns are not guaranteed.
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