Technical analysts use price charts to visualize the historical price movements of an asset over time. They examine different types of charts, such as line charts, bar charts, and candlestick charts, to identify patterns and trends

One of the fundamental principles of technical analysis is the concept of trends. Traders look for upward (bullish) or downward (bearish) trends in price movements to determine the general direction of an asset’s price.

Support levels are price levels at which buying pressure is expected to be strong enough to prevent further price declines, while resistance levels are price levels where selling pressure is expected to be strong enough to prevent further price increases. Technical analysts use these levels to identify potential entry and exit points for trades.

These are mathematical calculations applied to price and volume data to generate trading signals. Examples of technical indicators include moving averages, oscillators (such as the Relative Strength Index – RSI), and MACD (Moving Average Convergence Divergence).

Technical analysts study various chart patterns, such as triangles, head and shoulders, double tops/bottoms, and wedges, to anticipate potential trend reversals or continuation.

The trading volume, or the number of shares or contracts traded during a given period, is also analyzed in technical analysis. Volume can provide insights into the strength or weakness of a price movement and validate or contradict other technical signals.

Technical analysts often examine price data over different timeframes, including short-term (intraday), medium-term (daily or weekly), and long-term (monthly or yearly). Each timeframe provides different insights and signals.

Markets move in cycles as investors change from being optimistic (buliish) to pessimistic (bearish).  These cycles can be predicted with a range of cyclical techniques and statistical ratios and provide technical analysts with a view of what may happen next and in what timeframe.

Technical analysts will often test their ideas with dummy paper based trades, trades they can place in the past to see how they would have performed or perhaps testing entire trading strategies to see how their investments would have fared if they had bought and sold according to a pre-determined approach.

Technical analysts will evaluate any potential real or dummy trade against potential risk and reward of that trade.  Managing risk and reward is an essential skill when trading with technical analysis.