2.1 – Expectations
Often market participants approach technical analysis as a quick and easy way to make a windfall gain in the markets. On the contrary, technical analysis is anything but quick and easy. Yes, if done right, with the right measure of discipline and risk management, one can generate consistent returns, but to get to that stage, one must put in the required effort to learn the technique.
Let us understand how to set the right expectations based on TA from this video.
In the following video, we will learn the different types of charts you can use when performing Technical Analysis.
We recommend reading this chapter on Varsity to learn more and understand the concepts in-depth.
Key takeaways from this chapter
- Technical Analysis is a popular method to develop a point of view on markets. Besides, TA also helps in identifying entry and exit points.
- Technical Analysis visualizes the actions of market participants in the form of stock charts.
- Patterns are formed within the charts, and these patterns help a trader identify trading opportunities.
- TA works best when we keep a few core assumptions in perspective.
- TA is used best to identify short term trades.