Technical Analysis Fundamentals

Lesson 1: Candlesticks

Each candle shows the open, high, low and close for a period. A long body shows conviction; long wicks show rejection. Single-candle patterns matter only at meaningful levels.

Lesson 2: Trend and market structure

An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows. When an uptrend breaks its last higher low, structure has shifted, a warning that the trend may be ending.

Lesson 3: Support and resistance

Support is an area where buying has repeatedly stopped declines; resistance is where selling has capped rallies. Draw them as zones, not thin lines. Once broken, old resistance often becomes support.

Lesson 4: Timeframes

Use a higher timeframe for direction and a lower one for timing. A common pairing is daily for trend and 1-hour for entries. Conflicts between timeframes are a reason to wait.

Lesson 5: Indicators in their place

Indicators are calculations on price. They help you measure trend (moving averages), momentum (RSI, MACD) and volatility (ATR). Use one from each family at most; more indicators rarely mean better decisions.