Human psychology is the ultimate driver of market moves. Because patterns of fear and greed have remained constant for centuries, chart patterns like "Head and Shoulders" or "Double Bottoms" continue to appear because they reflect recurring human behavior. The Toolkit: From Candlesticks to Indicators
The goal of technical analysis is to identify a trend in its early stages and ride it until there is evidence of a reversal. This follows the Newtonian law of inertia: an object in motion tends to stay in motion.
The foundation of technical analysis rests on three specific premises:
Human psychology is the ultimate driver of market moves. Because patterns of fear and greed have remained constant for centuries, chart patterns like "Head and Shoulders" or "Double Bottoms" continue to appear because they reflect recurring human behavior. The Toolkit: From Candlesticks to Indicators
The goal of technical analysis is to identify a trend in its early stages and ride it until there is evidence of a reversal. This follows the Newtonian law of inertia: an object in motion tends to stay in motion.
The foundation of technical analysis rests on three specific premises:
