10 Tips to Getting Started With Technical Analysis

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Tip #1: Play the Trend

At the core, there are really only two trends that comprise technical analysis: continuations or reversals. So, technical analysis helps us identify whether an underlying security's movement (whether it's a stock, option, bond, ETF or commodity) will remain the same or change.

Technical analysis essentially holds that the history of a price action helps to define and shape future events. So, for example, if traders supported a stock on light-volume pullbacks to the 50-day moving average, they are likely to do so again.

Next: Tip #2