What is Technical Analysis?
Technical analysis (TA) is the study of historical price data to forecast future price movements. Unlike fundamental analysis, which examines intrinsic value, TA focuses purely on price action and volume.
Every one of our 6 AI strategies uses technical analysis as its foundation. The core belief: all known information is already reflected in the price.
Support and Resistance
Support is a price level where buying pressure prevents further decline. Think of it as a floor. Resistance is where selling pressure prevents further rise — a ceiling.
When price breaks through resistance, it often becomes the new support (and vice versa). This is called a role reversal and is one of the most reliable patterns in trading.
Trend Identification
There are three types of trends:
- Uptrend: Higher highs and higher lows
- Downtrend: Lower highs and lower lows
- Sideways: Price oscillates in a range
Our AI's Regime Detector classifies the market into these three states every cycle, then adjusts all 6 strategies accordingly.
Volume Confirmation
Price movements with high volume are more significant than those with low volume. A breakout on heavy volume is more likely to sustain than one on thin volume.
Volume precedes price. Watch for volume spikes as early warning signals.
Key Takeaways
- Price reflects all known information
- Support and resistance create tradeable levels
- Trend identification is the foundation of every strategy
- Volume confirms the strength of price moves