Technical analysis involves studying market data, primarily price and volume, to identify patterns and trends, and make informed trading decisions. Key Components: 1. Charts: Line, Bar, Candlestick 2. Patterns: Reversal (Head & Shoulders, Inverse Head & Shoulders), Continuation (Triangles, Wedges) 3. Trends: Uptrend, Downtrend, Sideways 4. Indicators: Moving Averages, RSI, MACD, Bollinger Bands 5. Oscillators: Stochastic, Force Index Technical Analysis Tools: 1. Chart Patterns: Identify reversals and continuations 2. Trend Lines: Draw lines connecting highs/lows 3. Support/Resistance: Identify key price levels 4. Moving Averages: Smooth price data 5. Relative Strength Index (RSI): Measure overbought/oversold conditions Types of Technical Analysis: 1. Fundamental Analysis: Examines economic, financial, and company data 2. Quantitative Analysis: Uses mathematical models 3. Sentiment Analysis: Analyzes market sentiment Advantages: 1. Identifies trends and patterns 2. Provides objective data 3. Helps predict price movements 4. Enables risk management Disadvantages: 1. Not foolproof 2. Requires expertise 3. Ignores fundamental factors Best Practices: 1. Combine with fundamental analysis 2. Use multiple time frames 3. Monitor indicator divergence 4. Adjust for market context Example: GBP/USD, 4-hour chart: 1. Identify Head & Shoulders pattern 2. Draw trend line 3. Set stop-loss below neckline 4. Take-profit at next resistance level To master Technical Analysis: 1. Study chart patterns 2. Learn indicator applications 3. Practice analysis 4. Stay updated on market developments