📊 How to Learn Technical Analysis – Step-by-Step Guide for Stock Market Enthusiasts 🎯 Especially for those with 1-2+ years of market experience! You've seen ups and downs in the market. Now it's time to read the market like a pro using Technical Analysis (TA). Here's your detailed roadmap 🧵👇 Thread
🧭 Step 1: Understand What Technical Analysis Really Is 📌 TA is the study of price charts and patterns to predict future movements. Unlike fundamental analysis (which looks at company health), TA only cares about price, volume, and time. 🔍 Why it matters: If a stock has
🕯 Step 2: Master Candlestick Patterns Candlesticks reveal market psychology. Each pattern tells a story of bulls vs. bears. ✅ Start with these: Hammer 🔨 = bullish reversal Shooting Star ⭐️ = bearish reversal Bullish Engulfing 🟩🟥 = strong buying interest Doji ✝️ =
🧱 Step 3: Learn Support & Resistance Like a Pro These are the walls of price movement: 🟥 Resistance = price ceiling 🟩 Support = price floor 📏 Draw horizontal lines on areas where price bounces or rejects multiple times. 📖 Example: Panacea Biotech broke 455–460 zone
🔊 Step 4: Use Volume as Your Best Friend Volume = Strength of the Move. 📌 If price breaks out with high volume, it's genuine. If price moves with low volume, it may reverse soon (weak hands).
🧪 Step 5: Learn Key Indicators (But Don’t Overuse!) Indicators confirm your analysis — don’t let them confuse you. ✅ Start with these: RSI: tells if stock is overbought or oversold MACD: signals momentum shift 50/200 EMA: for identifying short & long-term trends 📖
🧩 Step 6: Build & Backtest Your Own Strategy 🛠 Combine: 💎Price Action 💎Volume 💎Indicators 💎Chart Patterns 💎Exponential Average 🎯 Create setups like: “Bullish Engulfing + RSI < 40 + Near Support” = Buy Setup “Double Bottom + RSI < 40 + Big Volume” = Buy Setup
🛡 Step 7: Master Risk Management 🎯 Rule 1: Never risk more than 5-7% per trade 💰 Rule 2: Always know your entry, SL & target before entering 📊 Rule 3: Don't overleverage, especially in F&O ✴️ Rule 4: Always have Risk:Reward ratio = 1:2 minimum 📖 Example: If capital =
🧠 Step 8: Train Your Psychology Like a Monk Even the best strategy fails with a weak mindset. 💬 Common traps: 💎FOMO entries 💎Revenge trading 💎Cutting winners early, letting losers run 📖 Case Study: A trader with a 70% win strategy lost capital due to overtrading in
🎁 Bonus Step: Follow the Right Mentors & Communities 🙋♂️Join good Telegram channels, Twitter handles, or Discords focused on education (not tips). 👉Watch weekly chart reviews, backtest setups, and stay consistent! 📈 Consistency > Complexity Do comment and share if you love