No trader has a crystal ball that they can use to see what will happen next in the markets
As technical indicators derive their figures from a market’s price, most will be «lagging» or backwards-facing by their nature
Typically, you want to buy after the pattern breaks resistance
A hammer «fails» when a new high is achieved immediately after completion (candle), and a hammer bottom «fails» if the next candle achieves a new low
What are bullish and bearish flags?
Technical analysis is based on the principle that chart patterns will repeat themselves, resulting in the same price action most of the time
There are a few different types of MAs which each calculate averages in different ways
