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The Basis of Technical Analysis

First Steps: Step 4 of 7
Technical analysis focuses on trend analysis and explains how basic trend-following techniques are used.
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Chart 5: Trend Analysis and Timing
Markets do not move up and down in straight lines. The direction of a market is either bullish (upward) or bearish (downward) or simply neutral (sideways). Within each trend, the market develops counter-trend movements. In general, the markets move in waves, which is why you have to catch a wave at the right moment to take part in its movement.






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