Technical analysis examines past price and volume data to forecast future price movements. This type of analysis focuses on the formation of charts and formulae to capture major and minor trends, identify buying and selling opportunities and assessing the extent of market turnarounds. Depending upon your time horizon, you could use technical analysis on an intraday basis (5-minute, 15 minute, hourly), weekly or monthly basis. Technical analysis deals with the "when" of price movements, while fundamental analysis deals more with the "why."

Some tools used for technical analysis include RSI Indicator, Stochastic Indicator, Bollinger Bands, moving averages, MACD, and Fibonacci Ratios.

Learn the basic analytical techniques. All traders should have at least a basic understanding of fundamental and technical analysis. Fundamental Analysis involves the use of economic, financial and political news to determine trading decisions. Technical Analysis involves the study of charts to predict future price movements based on past price patterns and