Technical Analysis Fundamentals

What this video covers

• Why technical analysts (chartists) look strictly at past price and volume data, and why they ignore financial statements, earnings, and intrinsic value entirely
• The three core assumptions: market action discounts everything, prices move in trends, and history repeats itself through recurring patterns
• How to draw an uptrend line by connecting the higher lows, and why connecting the highs instead is a classic exam trap
• How to draw a downtrend line by connecting the lower highs, and why the trend persists until price action physically breaks the line
• What support and resistance levels are conceptually: the floor where buying pressure stops declines and the ceiling where selling pressure stops advances
• Why a level becomes more significant each time it is tested and holds, and what a decisive breakout means for the price direction
• Role reversal: why broken support becomes new resistance and broken resistance becomes new support, and how this captures shifting market psychology