# Technical Analysis Reference

## Key Technical Indicators

### Trend Indicators

**Moving Averages (MA)**
- SMA (Simple Moving Average): Average price over N periods
- EMA (Exponential Moving Average): Weighted towards recent prices
- Common periods: 20-day, 50-day, 200-day
- Golden Cross: 50-day MA crosses above 200-day MA (bullish)
- Death Cross: 50-day MA crosses below 200-day MA (bearish)

**MACD (Moving Average Convergence Divergence)**
- MACD Line: 12-day EMA - 26-day EMA
- Signal Line: 9-day EMA of MACD
- Histogram: MACD - Signal
- Bullish: MACD crosses above signal line
- Bearish: MACD crosses below signal line

### Momentum Indicators

**RSI (Relative Strength Index)**
- Range: 0-100
- Overbought: > 70
- Oversold: < 30
- Divergence: Price makes new high/low but RSI doesn't (reversal signal)

**Stochastic Oscillator**
- %K and %D lines
- Range: 0-100
- Overbought: > 80
- Oversold: < 20

### Volatility Indicators

**Bollinger Bands**
- Middle Band: 20-day SMA
- Upper Band: Middle + (2 × standard deviation)
- Lower Band: Middle - (2 × standard deviation)
- Squeeze: Bands narrow (low volatility, potential breakout)
- Expansion: Bands widen (high volatility)

**ATR (Average True Range)**
- Measures volatility
- Higher ATR = higher volatility
- Used for stop-loss placement

### Volume Indicators

**OBV (On-Balance Volume)**
- Cumulative volume indicator
- Rising OBV + rising price = strong uptrend
- Divergence between OBV and price = potential reversal

**Volume Moving Average**
- Compare current volume to average
- High volume breakout = stronger signal

## Chart Patterns

### Reversal Patterns
- Head and Shoulders (bearish)
- Inverse Head and Shoulders (bullish)
- Double Top (bearish)
- Double Bottom (bullish)

### Continuation Patterns
- Flags and Pennants
- Triangles (ascending, descending, symmetrical)
- Rectangles

## Support and Resistance

**Support**: Price level where buying pressure prevents further decline
**Resistance**: Price level where selling pressure prevents further rise

**Key Levels to Identify:**
- Previous highs and lows
- Round numbers (psychological levels)
- Moving averages
- Fibonacci retracement levels (23.6%, 38.2%, 50%, 61.8%, 78.6%)

## Analysis Workflow

1. **Identify the trend** (uptrend, downtrend, sideways)
2. **Locate support/resistance levels**
3. **Check multiple timeframes** (daily, weekly, monthly)
4. **Confirm with indicators** (don't rely on single indicator)
5. **Look for divergences** (price vs indicators)
6. **Assess volume** (confirms trend strength)
7. **Identify chart patterns**
8. **Determine risk/reward ratio**
