The more times price touches a trendline and bounces, the stronger and more valid that trendline becomes. A occurs when you draw a parallel line opposite the trendline, trapping the price action within a clear, predictable corridor. 3. Support and Resistance: The Pillars of Market Structure
If price breaks out on , it is highly likely a "bull trap" or fakeout, and the price will crash back down. 6. The Fibonacci Toolkit
A two-candle pattern where the body of the second candle completely swallows the body of the first candle. This signals an aggressive shift in control. trading technical analysis masterclass pdf
A major bullish signal (Golden Cross) occurs when the 50-day MA crosses above the 200-day MA. A major bearish signal (Death Cross) occurs when the 50-day MA crosses below the 200-day MA. Momentum Oscillators
Chart patterns represent macro-psychology playing out over weeks or months. They are categorized by whether they point to a continuation or a reversal of the prior trend. Reversal Patterns The more times price touches a trendline and
Converging trendlines that compress price action into a tight vertex. This compression builds pressure, leading to an explosive breakout in the direction of the dominant market trend. 5. Technical Indicators: Enhancing Your Edge
Human psychology is consistent, leading to recognizable patterns. 2. Reading the Language: Candlestick Mastery Support and Resistance: The Pillars of Market Structure
Never risk more than 1–2% of your total account balance on a single trade. 7. Building Your Trading Plan
Every known piece of news, economic data, and market sentiment is already reflected in the asset's current price.