Technical Analysis 101
Learn chart patterns, indicators, and price action analysis.
Technical Analysis 101: Read the Market
Technical analysis is the art and science of reading price charts to identify trends, reversals, and trading opportunities. This hub covers the essential indicators, chart patterns, and price action concepts every trader needs.
Foundation Indicators
- Moving Averages: Trend direction and support/resistance levels
- RSI: Overbought/oversold momentum signals
- MACD: Trend-following momentum confirmation
- Volume: Confirming price moves and spotting divergences
Articles
Coinbase vs Kraken: Which Crypto Exchange is Better?
Coinbase or Kraken for crypto? We compare fees, security, and user experience.
TD Ameritrade vs E*TRADE: Best for Options Trading?
Choosing between TD Ameritrade and E*TRADE for options? We compare platforms and fees.
How to Start Trading Stocks with $100 in 2026
You don't need thousands to start investing. Learn how to begin with just $100.
Best Crypto Exchanges 2026: Top 5 Platforms Compared
Looking for the best crypto exchange? We compare the top 5 platforms to help you trade with confidence.
Robinhood vs Webull 2026: Which Trading App is Best?
Choosing between Robinhood and Webull? We compare fees, features, and user experience to help you decide.
Common Questions
What's the minimum amount needed to start trading?
Many online brokers now offer $0 minimums for stock trading. Forex typically requires $100-$500 for micro accounts. Options usually needs $2,000+ for margin accounts.
Stock broker vs forex broker - which do I need?
Stock brokers offer equities, ETFs, and options. Forex brokers specialize in currency pairs with higher leverage. Some like Interactive Brokers offer both. Consider fees, platforms, and asset variety.
What trading fees should I watch out for?
Key fees: commissions per trade, spreads, overnight/swap fees, inactivity fees, withdrawal fees, and data subscriptions. Commission-free doesn't mean free - brokers may earn from payment for order flow.
Is day trading profitable for beginners?
Statistics show 70-90% of day traders lose money. Success requires education, practice, disciplined risk management, and $25,000+ for US pattern day trading rules. Start with swing trading.
Key Terms
Moving Average (MA)
A smoothed line calculated by averaging closing prices over a set period. The 50-day and 200-day MAs are widely watched. When the 50-day crosses above the 200-day (golden cross), it signals bullish momentum. MAs lag price action — they confirm trends rather than predict reversals.
Relative Strength Index (RSI)
A momentum oscillator ranging 0-100. RSI above 70 suggests overbought conditions; below 30 suggests oversold. Developed by J. Welles Wilder. Most effective as a confirmation tool alongside other indicators. Divergence between RSI and price often signals trend reversals.
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator showing the relationship between two moving averages (typically 12-day and 26-day EMAs). Signal line crossovers and histogram changes identify trend shifts. One of the most popular technical indicators across all timeframes.
Support and Resistance
Price levels where buying (support) or selling (resistance) pressure historically concentrates. Support acts as a floor; resistance acts as a ceiling. When broken, support becomes resistance and vice versa. Key levels are identified through previous highs/lows, round numbers, and moving averages.