What is technical analysis?
Technical Analysis Explained
Technical analysis (TA) is a method of evaluating stocks by analyzing price charts and trading volume. It assumes that historical price patterns can predict future movements.
In Trading Game, many beginners use technical analysis as a practical sandbox. The app includes key chart tools and indicators such as moving averages, RSI, Bollinger Bands, volume, VWAP, Supertrend, and volume profile, allowing users to practice reading charts and applying technical concepts using real market prices — without risking real money.
Core Principles
- Price reflects all available information
- Prices move in trends
- History tends to repeat itself
Common Indicators
- Moving Averages (MA) - Average price over a period
- RSI (Relative Strength Index) - Measures overbought/oversold conditions
- Bollinger Bands - Volatility indicator
- Volume - Number of shares traded
Chart Patterns
- Head and Shoulders - Reversal pattern
- Double Top/Bottom - Reversal signals
- Triangles - Continuation patterns
- Flags and Pennants - Short-term continuation
Note: Technical analysis is one tool among many. Many traders combine it with fundamental analysis for better results.
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