Hey everyone! Ross here from Warrior Training Today, we're going to talk about technical analysis. Now when it comes to training, you've got two forms of analysis: fundamental analysis, and you can watch my video about that separately. If fundamental analysis is when you are looking at the fundamentals of a company, the P/e ratio, the balance sheet, the earnings reports, you're really looking very closely at the headlines. and then the other camp is technical analysis.

Now, most short-term traders, and certainly active day traders like myself, we're really focused primarily on technical analysis. The problem with focusing on fundamental analysis is that short term you can see a divergence where the news is great, but the stock goes down or the stock, the news is horrible and the stock goes up and it doesn't always make sense. So as a short-term trainer I end up just focusing primarily on technical analysis. And that means I'm looking very quick, very carefully at the current trading price and the context of the current trading price versus historical trading prices.

And the way we see that is by looking at stock charts. So a stock chart shows us the historical price of a stock over any period of time that you want to look at. whether it's from the day the stock first IPO to on the market. or maybe you're looking just six months back or just three months back, you can see the historical price action.

So when we're looking at it from a technical perspective, we're asking ourselves in the context of the previous historical price: Is the current price high or low relative to what's normal for the stock? Does the current price face potential resistance from a previous area where the stock was sort of topping out At is the current price near a historical level of support where the stock was sort of basing at, and that can help us understand potential reward targets, profit targets, and also potential risk levels. Now, in order to better understand historical price action, a lot of traders will use what are called technical indicators, and these indicators are mathematical formulations that are used to take historical price action and try to create a potential projection or understanding of what could happen in the future. And of course, there's no such thing as a technical indicator that can predict the future of the market. So they're all somewhat speculative, but this is what traders use and traders will use.

There's thousands of combinations of technical indicators and charting timeframes and charting types that you can choose from. Whether you're trading stocks ETFs futures, Forex or whatever. you can apply stock charts to all of these and each different investment vehicle. There will be different stock charts that are more popular than others and different technical indicators that are more popular than others.

so we won't get into all the different technical indicators in this video. I Just wanted you to understand the difference between technical analysis and fundamental analysis. As usual, any questions, don't hesitate to leave them below if you're still watching. You must have really enjoyed that video.

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