Learning path 4 of 9
Technical analysis
Read price charts honestly. Candlesticks, trends, support and resistance, common indicators, backtesting, and the real limits of chart-based methods.
32 lessons in this path. Progress is saved in your browser as you go.
Technical analysis studies price and volume data to describe what the market has been doing. It is widely used and widely oversold.
This path teaches the tools properly: how each chart and indicator is built, what it measures, and the assumptions behind it. Every lesson also covers what the tool cannot do. No indicator predicts the future reliably, and a method that looks brilliant on a hand-picked chart often fails when tested fairly. Learning that early will save you money.
Who this path is for
Learners who understand orders, liquidity and market cycles from the foundations path and want to read charts critically.
What you will be able to do
- Read candlestick charts, volume and different timeframes.
- Explain how moving averages, RSI, MACD, Bollinger Bands and VWAP are calculated and what they assume.
- Describe trends, support and resistance without treating them as guarantees.
- Explain why backtests mislead and how to test a method fairly.
Before you start
- Stock market foundations: Charts record prices made by orders on an exchange; you need to understand orders, spreads and liquidity first.
The route, module by module
Take the modules in this order. Filled stops are lessons you have completed; dashed stops are still being written.
Module 1Reading price charts
Price charts, OHLC data, candlesticks, timeframes, linear and logarithmic scales, volume, and why historical prices are adjusted.
Module 2Trends, support and resistance
Market structure, trends and trading ranges, support and resistance, trendlines, breakouts, gaps and false signals.
Module 3Indicators
How moving averages, VWAP, RSI, MACD, Bollinger Bands, ATR, the stochastic oscillator and on-balance volume are calculated, and what each assumes.
Module 4Chart patterns and candlestick formations
Candlestick formations, reversal and continuation patterns, and volume confirmation, treated as observations to test rather than predictions.
Module 5A trading process and risk control
A repeatable chart process, observations compared with hypotheses, entry and exit plans, stop placement, risk per trade, expectancy and risk of ruin.
Module 6Backtesting and the limits of technical analysis
How to backtest fairly, the biases that make backtests look better than reality, overfitting, sample size, out-of-sample testing and the evidence on technical methods.
Related paths
- Investing and portfolio managementBuild and run a portfolio you can stick with. Compounding, diversification, asset allocation, funds, rebalancing and the behaviour that undoes good plans.
- Derivatives and advanced market conceptsFutures, options, leverage, short selling, options Greeks and volatility, with a clear focus on how quickly losses can grow.