Introduction to Technical Analysis by 4x Prophet

Technical Analysis (TA) is the study of past market data, primarily price and volume, to forecast

future price movements. It is a core method used by traders across various financial markets,

including forex, stocks, and cryptocurrencies.

Unlike fundamental analysis, which evaluates economic and financial factors, technical

analysis focuses solely on price action and trader psychology. With proper mastery, technical

analysis allows traders to identify trends, reversals, and optimal entry and exit points with

precision.

This guide is designed to take you from intermediate to advanced levels of technical analysis,

ensuring that you develop deep market insight and gain an edge over retail traders.

1. The Core Principles of Technical Analysis

🔍 The Market is Always Discounting Information

The price of an asset reflects all known information, including economic news, earnings reports,

and geopolitical events. TA assumes that everything is already priced in, meaning traders need

to focus on interpreting price action rather than external factors. Understanding market sentiment and price structure is key to capitalizing on opportunities before they become obvious.

🔄 Price Moves in Trends