1.Market trends for technical analysis

– Market movements reflect everything, and price movements are determined by supply and demand.

– It is safe to say that all factors, including economic, social, and political, are reflected in the price.

– The psychology of market participants and natural phenomena (natural disasters) are also reflected in the market.

– There is always a reason for a trend to rise or fall, but analyzing price movements is the way to think about trading.

2.Prices move according to trends

– Trends are very important and fundamental in technical analysis.

– Trend following strategy is to buy after confirming an upward trend and selling after confirming a downward trend.

– The trend-following strategy involves entering a position even if the market is falling in the short term and the price is rising if it is trending upward in the long term. (You can think of it as buying at a higher price and selling at a higher price, rather than buying low and selling high.)

3.History repeats itself.

– In all investment markets, including stocks, bonds, and cryptocurrency, price movements appear on charts.

– Although the chart is a two-dimensional picture with x and y axes, price movements are ultimately determined by market participants.

– That is, it is created by individuals, institutions, banks, etc.

– It is impossible to predict the future using past market data. However, you can approach this by saying that certain patterns are likely to be repeated.

4.Usefulness of technical analysis

– Price data analysis: Records of price movements of all investment assets such as stocks, bonds, raw materials, and cryptocurrency are valuable data for investors.

– Know direction and volatility: Charts are like maps. Because you can immediately determine the direction of the current price and price changes, you can get hints using maps, or charts.

– Analysis of price movements accompanying past events

– It is possible to accurately analyze what price movements occurred when the IMF or Lehman crisis occurred in the past.

– You can predict and analyze what movements and risks will occur if a similar situation occurs.