🗓️ 15102025 0035
Core Concept: Predict price movements by analyzing charts and patterns.
How It Works
Assumes past patterns repeat due to consistent human psychology. Uses:
- Price patterns: support/resistance, trend lines, chart formations
- Indicators: RSI (overbought/oversold), MACD (trends), moving averages
- Volume: confirms or contradicts price moves
Time Horizons
- Day trading: minutes-hours
- Swing trading: days-weeks
- Position trading: weeks-months
Trade-offs
Pros: Works across markets, provides entry/exit signals, can profit up/down
Cons:
- ⚠️ 80-90% of day traders lose money
- Lagging indicators
- High fees erode returns
- Time intensive, stressful
- Academic evidence skeptical
Singapore: Lower SGX liquidity, 0.2% stamp duty, platforms like TradingView, IBKR, Tiger
Best For
Active traders with time and risk tolerance who enjoy charts
⚠️ Not for long-term investors or full-time workers
References
- "Technical Analysis of the Financial Markets" by John Murphy