Identify Trading Signals with Technical Analysis

Let’s start with an interest in technical analys of trading view buy sell signals. This method consists in studying the price movements of the financial markets to predict future ones starting from the historical graphs of a given asset. It is therefore an analysis based on the principle that an investor can identify market trends from a purely graphic and mathematical point of view to use them as signals about the future trajectories of stock market prices. Technical analysis differs from fundamental analysis in that it is based solely on the graphs of an asset while the fundamental one seeks to determine the real value of an asset based on external factors and indicators. Among the tools of technical analysis that allow the identification of signals of rise or fall in prices and, therefore, of more or less long-term trends, we find in particular psychological thresholds such as support and resistance levels, moving averages and the Bollinger bands. These indicators, which are dealt with in more detail in specific articles, all have the purpose of allowing technical investors to better understand the charts by visually identifying the trends and strength of the market. The main advantage of technical analysis is that it allows the identification of trend signals of prices on a market, a factor at the basis of any investment strategy. In fact, there are many who use these technical indicators to identify buy or sell signals. It is also known that technical analysis has become so popular that some consider it a method whose rules are such as to determine the realization of predictions themselves. In fact, given that many investors use this method for their positions, buyers and sellers are increasingly grouping around the same price levels, reaching the expected trend. However, technical analysis is still not a 100% reliable method since there are always external elements that influence the market and, in fact, the historical price of an asset from a graphic point of view is limited to providing a indication of the probable trend of an asset without any guarantee. To obtain a greater level of certainty, investors must use various indicators and analysis tools and implement an effective risk management strategy to protect themselves from unfavorable movements.