What is Technical Analysis?

Technical analysis; It is a type of analysis done on a price chart that aims to predict future market movement by observing indicators, volume data and price movements. Analyzes are made about the future state of an asset by inferring from its past movements.



It is done using various charting tools known as indicators to examine prices and eventually find reasonable trading opportunities. Technical analysis indicators can help traders identify current trends and also provide insight into future trends.

Types of technical analysis indicators

One of the widely known and most used indicators; Examples include SMA, RSI, BB, and MACD.

SMA (Simple Moving Averages) is an indicator that is calculated based on the closing price of an asset over a period of time.

RSI (Relative Strength Index) generates values within predefined ranges by applying mathematical formulas to pricing data, and these values are between 0-100.

The BB indicator (Bollinger Bands) is used to calculate the price volatility range, detecting potential overbought and oversold conditions.

MACD (Convergence of Moving Averages), one of the other frequently used indicators, can be briefly defined as a momentum indicator formed by the divergence or convergence of moving averages and is used to understand the general trend direction of the asset.