Technical Analysis (TA)
Plain English
Studying price charts and patterns to predict future movements. Uses indicators like moving averages, RSI, and support/resistance levels. Like reading weather patterns to forecast rain. Critics say past prices don’t predict future; supporters say patterns repeat due to human psychology.
Technical
Methodology analyzing statistical trends from trading activity: price, volume, historical patterns. Assumes all information is reflected in price and history repeats. Techniques: chart patterns (head & shoulders, triangles), indicators (RSI, MACD, Bollinger Bands), support/resistance levels. Behavioral finance underpins effectiveness. Limited by market efficiency hypothesis - especially relevant in crypto’s 24/7 algorithmic markets.