THIS IS HOW I LEARNED TECHNICAL ANALYSIS

Hello there, readers.

I’m sure you’re doing fantastic!

It’s Sunday, which means it’s time for another post.

Monday through Friday, I trade in the Indian stock market, and on weekends, I write about my trading experiences.

So far, I’m really enjoying both trading and blogging!

Today I’ll talk about how I first became interested in technical analysis.

Technical analysis is a trading discipline that uses price trends and patterns on charts to evaluate investments and identify trading opportunities.

(From Investopedia)

If you want to start intraday or positional trading, technical analysis is an important skill to have.

Mastery of which would yield fantastic results in terms of profit earning.

It was initially intimidating for me as a beginner.

Jyothi Bansal’s Udemy course was my first foray into learning it.

She is a SEBI-registered analyst, and her teaching laid a solid foundation for me to build on.

With that course, I learned how to draw trend lines, identify support and resistance zones, and became acquainted with a variety of indicators.

I took her course in 2020 and was initially uncertain about identifying trends.

I was also unclear about identifying peaks and troughs to determine support and resistance levels.

Due to my lack of confidence, I began to rely heavily on indicators such as moving averages, oscillators, and MACD to find entry and exit signals.

Indicators, unsurprisingly, did not work for me.

The buy and sell signals came in far too frequently. It was a complete mess!

Then, in order to improve my skills, I subscribed to some YouTube channels, which was another bad idea.

I strongly advise against using YouTube as a trading learning resource.

In my opinion, half-baked information over there does more harm than good.

And so, I continued to practice with smaller quantities and made a lot of mistakes.

However, in retrospect, I recognize how valuable those mistakes were.

While making mistakes, I gained practical experience drawing trendlines and identifying important price reaction levels.

After reading these books this year, I gained confidence in identifying critical levels:

1. John J. Murphy’s Technical Analysis of Financial Markets

2. Steve Nison’s Japanese Candlestick Charting Techniques

3. Brian Pezim’s How to Swing Trade

The books I mentioned above have been extremely beneficial to my swing trading.

I primarily trade based on chart patterns because they help me understand price objectives and stop loss levels.

I’ll share the link to the Udemy course I mentioned. Explore it because it is a valuable source of information for beginners.

The beauty of technical analysis is that once mastered, it can be applied to any market in the world.

What were the resources that helped you when you first began trading?

I’d love to know, so please leave your resource names in the comments!

Good luck with your analyses!

My Twitter handle is: anaida__sultana if you want to reach out to me.

Until the next time

Resources:

(You can find the eBooks that I have mentioned for free on this website)

(Link for the Udemy course)

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