Where to learn technical analysis for trading

  • This topic has 19 replies, 2 voices, and was last updated 2 weeks ago by Seb_2798.
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  • #190179 Reply
    BHart

      Hello

      I have spent most of my working life doing the odd bit of investing. This has mostly been in US and UK indices with some attempts (mostly unsuccessful) to make money dealing in digital assets like Ether. Now I am in a position to focus more of my time to it, and I want to trade shorter time spans.

      The challenge I have is that I’ve mainly centred on fundamentals and lots of what I’ve been reading online says charts and technical analysis is more important for day trading.

      I’m hoping some active traders on DayTrading.com can share some top quality resources that will help me learn how to do technical analysis effectively.

      I’ve tried a few different places so far (SMB Capital on YouTube). I’ve also ordered a book called The Handbook of Technical Analysis + Test Bank: The Practitioner’s Comprehensive Guide to Technical Analysis but I’m expecting it to be quite dry so some lighter, more engaging resources would be great.

      Regards

      BH

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      • #190259 Reply
        BE29

          The best way to learn technical analysis is to fire up a demo account and practice day trading on charts.

          Start by setting your chart to a 1-minute, 5-minute, or 15-minute timeframe. Then use simple candlesticks to visualize any price action.

          Begin with one or two indicators, such as moving averages (a combination of short-term like a 9-period, and long-term like a 50-period to help identify trends) and the relative strength index (to spot overbought and oversold levels).

          Volume indicators are also helpful for confirming price movements, while Bollinger Bands can assist in identifying volatility and potential reversals.

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          • #190375 Reply
            BHart

              Yeah man I have a demo trading account that I’m using as well don’t worry.

              I appreciate your suggestions on chart types, timeframes and indicators.

              BH

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            • #190462 Reply
              BE29

                You are welcome and fire any more questions you have on here if you get stuck.

                I know from my own experience getting lost in trading charts over the years that it can be a tricky puzzle to crack.

                Reply
            • #190258 Reply
              Intraday Insider

                I like the series from Charles Schwab which is free on YouTube. Here you go – https://www.youtube.com/playlist?list=PLf5N6dqfQaNQbOG0mw5YCZ0ql3AbBvREn

                I’ve watched them all and found them a nice introduction to the basics if you want them in bite sized format. They’re particularly good if you plan to deal in stocks, as they mainly concentrate on that asset class.

                You won’t get much more than the essentials though so I’d use it alongside other resources.

                 

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                • #190376 Reply
                  BE29

                    Some of these looks fine but they are very high level. A few of them seem to be more about the thinkorswim platform as well. The one on Bollinger Bands is a well done introduction.

                    Reply
                  • #190464 Reply
                    Intraday Insider

                      As I said in my OP, they are a “nice introduction” and “bite sized”.

                      I’m with you on the thinkorswim platform sell but every course, video and the like out there these days seems to be selling something.

                      Reply
                    • #190568 Reply
                      BHart

                        I just finished this video series. Some great introductions to key topics like you mentioned and I especially liked the one on pitfalls to avoid in technical analysis.

                        I’m going to try and get through all the resources shared on this post. Knowledge is power and all that!

                        BH

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                    • #190257 Reply
                      BiggieTrades

                        Udemy’s technical analysis courses are decent if you are brand new and don’t want to break the bank.

                        I would look at the ones under ‘Beginner Favourites’ and choose one with a high rating of over 4.5/5.

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                        • #190377 Reply
                          BE29

                            I wouldn’t be paying for courses when there is so much free stuff online….a massive waste of money IMHO.

                            Reply
                        • #190265 Reply
                          James Barra
                          Moderator
                            DayTrading.com Team

                            Hi BHart,

                            Have you checked out DayTrading.com’s guide to technical analysis for beginners?

                            It breaks down all the basics and unpicks popular charts, indicators and other tools.

                            Reply
                            • #190379 Reply
                              BHart

                                Hello

                                I have read it now so thank you for sharing. The breakdown of all the indicators looks particularly helpful – I’ve got the page on moving averages open alongside my demo trading account right now.

                                BH

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                              • #190465 Reply
                                James Barra
                                Moderator
                                  DayTrading.com Team

                                  Glad to hear it.

                                  You know where we are if you have any specific questions on charts, indicators, and drawing tools etc. Just put them on here or create a new post.

                                  Reply
                              • #190293 Reply
                                Christian Harris
                                Participant

                                  I always recommend Babypips as an excellent place to start.

                                  Although it’s aimed at forex trading, the principles of technical analysis can be applied to all assets, including stocks and indices.

                                  Check out this excellent free course that can be completed in your own time – https://www.babypips.com/learn/forex

                                  Reply
                                  • #190378 Reply
                                    Intraday Insider

                                      I like Babypips too, especially for forex trading. They are good at keeping things easy to understand when you are brand new to a trading topic.

                                      Reply
                                  • #190569 Reply
                                    CoconutScalper

                                      Fidelity have an excellent PDF on identifying chart patterns with technical analysis. This is the link: https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/learning-center/Idenitfying-Chart-Patterns.pdf

                                      It is from a webinar series they did on technical analysis where they also covered getting started with TA, indicators for TA and managing risk in TA. I do not know if the vids can still be viewed but a worthwhile watch if you can find them.

                                      Reply
                                    • #190627 Reply
                                      Christian Harris
                                      Participant

                                        My 2 cents on TA. 99% of it is useless.

                                        Institutions (big money) don’t trade based on TA. Analysts use TA to create reports to generate liquidity in the market, but that’s another story…

                                        I can save you years of trading stress by suggesting you consider the following: concentrate only on supply and demand (resistance and support).

                                        Mark your charts with major S&R levels and buy and sell at those levels. Consider these levels as purchasing an asset for cheap (support) or expensive (resistance).

                                        Sit on your hands while the price fluctuates between those levels. Attempting to trade all the ‘noise’ is why most day traders fail.

                                        NOTE: Hedging should be considered for advanced risk management.

                                        Reply
                                        • #190737 Reply
                                          Seb_2798

                                            I don’t fully agree that institutions never use technical analysis. Some use it alongside fundamental analysis to build trading systems. I think the distinction is that they typically have much more comprehensive data (order flow, market depth, sentiment etc) so they can paint a more complete picture than technical analysis alone.

                                            I’m with you about focusing on price action, support and resistance and trying to block out market noise.

                                            Basically, I think technical indicators CAN be useful in some contexts, but I wouldn’t base my trading strategy on it.

                                            Reply
                                          • #190750 Reply
                                            Christian Harris
                                            Participant

                                              I agree with your comments Seb_2798.

                                              I was trying to say that retail traders shouldn’t obsess with TA because it’s not a panacea to successful trading.

                                              Price will move where institutions (considerable money) want it to, regardless of chart patterns, indicators, etc…

                                              All we retail traders can do is try and enter a trade with the best odds of winning, and I believe that trading at significant price levels is the ‘safest’ way with the highest chance of success.

                                              Each to their own, of course. Good luck.

                                              Reply
                                            • #190823 Reply
                                              Seb_2798

                                                Yeah that’s where the real battles happen. It’s all about improving the odds, like you said. And yeah, no strategy is foolproof, it’s about finding what works best for you.

                                                Good luck to you too, and happy trading!

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