Knowledge Hub

Technical Analysis: 21 Core Concepts

A visual primer on the building blocks every chart reader should know - each idea explained simply, with a quick illustration.

Each candle shows the open, high, low and close for a period. The body spans open to close; the thin wicks mark the extremes.

A bullish candle closes above its open (price rose); a bearish candle closes below it (price fell). Colour shows direction at a glance.

A doji has almost no body - open and close are nearly equal. It signals indecision and a possible turning point.

A small down candle is followed by a larger up candle that completely engulfs it - buyers overwhelm sellers, hinting at a bullish reversal.

A small up candle is followed by a larger down candle that engulfs it - sellers take control, hinting at a bearish reversal.

A small body with a long lower wick after a decline. It shows buyers rejecting lower prices - a potential bottoming signal.

Support is where buyers tend to step in; resistance is where sellers do. Price often reacts at these levels.

An uptrend makes higher highs and higher lows; a downtrend does the opposite. Reading the trend frames every decision.

A trendline connects successive swing lows (or highs). It frames the trend and flags a potential break.

When price travels between two parallel trendlines it forms a channel - a band that contains the prevailing trend.

A breakout is when price closes decisively beyond support or resistance, often igniting a fresh move.

A pullback is a temporary counter-move within a trend - a pause before the trend tends to resume.

Volume is how much traded in a period. Rising volume confirms a move; thin volume warns of weak conviction.

A moving average smooths price into one line, helping you see the underlying trend and dynamic support or resistance.

When a faster MA crosses above a slower one it is a golden cross (bullish); crossing below is a death cross (bearish).

Bands set above and below a moving average expand and contract with volatility, framing a 'normal' range for price.

The Relative Strength Index measures momentum from 0 to 100. Above 70 is often overbought; below 30, oversold.

MACD tracks the gap between two moving averages. Line crossovers and the histogram signal shifts in momentum.

Three peaks with a higher middle 'head'. A break of the neckline often marks a trend reversal.

Two failed attempts at the same high (top) or low (bottom) suggest the trend may be turning.

Converging trendlines compress price into a triangle. A break from it often resolves the next directional move.

For learning only - educational basics, not financial advice.

Ready to put these into practice?