Technical analysis is the study of price movements and charts to understand how markets behave over time.
Instead of focusing on a company’s business or financials, technical analysis focuses on how prices move, where buyers and sellers act, and how trends form.
This section is designed to help beginners understand charts and market behavior, without promoting risky or aggressive trading.
The goal is awareness and clarity, not prediction or shortcuts.
👈 Who this is for:
Beginners who want to understand market charts before making any trading or investing decisions.
This section is ideal if you:
- Feel confused by stock charts
- Want to know why prices move up and down
- Want to avoid emotional or impulsive decisions
- Are curious about technical analysis but want a responsible introduction
What You’ll Learn Here
By the end of this section, you will understand:
- What technical analysis actually means
- Why stock prices move the way they do
- Basic types of stock charts
- Core concepts like trends, support, and resistance
- Common indicators used by traders
- How to use technical analysis responsibly, especially as a beginner
How This Section Is Structured
This section is broken into simple, beginner-friendly lessons, focused on understanding — not trading aggressively.
Lesson 1 – What Is Technical Analysis?
Technical analysis is the study of past price movements to understand possible future behavior.
It is based on three core ideas:
- Price reflects all available information
- Prices tend to move in trends
- Market behavior often repeats over time
📌 Important for beginners:
Technical analysis works on probabilities, not certainty. It does not guarantee outcomes.
Lesson 2 – Why Do Prices Move?
Stock prices move due to multiple factors, such as:
- Demand and supply
- News and events
- Company results
- Overall market sentiment
📌 Simple rule:
- More buyers than sellers → price goes up
- More sellers than buyers → price goes down
Lesson 3 – Types of Stock Charts
Charts visually represent how prices change over time.
Line Chart
- Simplest form
- Connects closing prices
- Best for absolute beginners
Bar Chart
- Shows open, high, low, and close
- Provides more detail than line charts
Candlestick Chart
- Most commonly used
- Easy to understand buyer and seller strength
- Shows market psychology clearly
📌 Beginner tip:
Start with line charts before moving to candlestick charts.
Lesson 4 – Trends and Trendlines
What Is a Trend?
A trend shows the overall direction of price movement.
- Uptrend → higher highs and higher lows
- Downtrend → lower highs and lower lows
- Sideways → no clear direction
Trendlines
Trendlines are drawn on charts to connect important price points and help identify trends.
📌 Beginner advice:
Always respect the trend — avoid going against it.
Lesson 5 – Support and Resistance
Support
A price level where buying interest is strong enough to prevent further decline.
Resistance
A price level where selling pressure limits further price rise.
📌 Think of it like:
- Support = floor
- Resistance = ceiling
Lesson 6 – Indicators (Basic Introduction)
Indicators are tools that help analyze price behavior.
Common beginner indicators include:
- Moving Averages
- Relative Strength Index (RSI)
- Volume
📌 Important:
Indicators support decisions — they do not predict the future.
Lesson 7 – Technical Analysis vs Investing
Technical analysis is commonly used for:
- Entry and exit timing
- Short-term decisions
Fundamental analysis is used for:
- Long-term investing
- Evaluating business quality
📌 Best practice:
Use technical analysis as a supporting tool, not the sole basis for decisions.
Key Takeaways
- Technical analysis studies price behavior, not business fundamentals
- Charts help visualize trends and market psychology
- Trends, support, and resistance are core concepts
- Indicators should be used carefully
- Beginners should avoid over-trading and over-confidence
What’s Next?
Before taking any real market action, it’s essential to learn how to protect your capital and manage risk.
👉 Explore Risk Management
👈 Go Back to Learning Hub
Or Skip to Risk Management
Final Note from Samnidhi Insights
Technical analysis is not about predicting the market.
It is about understanding behavior, reducing emotional decisions, and improving discipline.
For beginners, learning to read charts calmly is far more important than taking frequent trades.