The Septo Fono Blog

Technical Analysis works but not necessarily for the reason most people believe. Many successful traders don’t want to share this secret. Technical Analysis works because many people use it, and successful traders are able to predict how other people will react on the different Technical Analysis day trading indicators and signals. In its most simple form, technical analysis is simply about identifying the trend lines on a price chart.  Trends are plotted by connecting the peaks in a share-price graph to make the ‘resistance line’ and the troughs to make a ‘support line’. Between the two lines is the current trading range of the stock.