How to Use Technical Analysis to Predict Stock Price Movements

Aayushi Jain

Technical analysis assumes that all relevant information is reflected in the stock price, which moves in recognizable trends.

Key tools like Moving Averages (SMA, EMA) help identify trends and smooth out price data to spot potential shifts in the market.

The MACD indicator gauges momentum, signaling bullish or bearish trends based on crossovers between the MACD and signal lines.

RSI helps spot overbought or oversold conditions, signaling potential reversal points with values above 70 or below 30.

Bollinger Bands and volume analysis show price volatility and trading strength, helping traders identify potential buy or sell opportunities.

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