Technical analysis has been regarded as one of the most powerful tools that a trader can employ to make sound decisions. It is mere comparison of the past price trends, and trade volumes with the perception of the future price trends. Technical analysis examines the charts and trends of a company and not its fundamentals making it the most choice method by the individuals who are willing to trade quickly based on the patterns evident in the market. Regarding Malaysian traders, this technique gives them a chance to make an entry into the action without the need to dive into the financial records of a company.

Technical analysis is so attractive due to the fact that it is founded on hard data. Various charting techniques including candlestick, trend lines, and indicators help the traders to observe the potential price direction. To illustrate, Relative Strength Index (RSI) can be used to show whether a stock is being overbought or oversold, when to get in and out of a stock. This allows the traders to take facts-driven decisions rather than gut-driven decisions hence, the strategy is a sure-footed step in a dynamic market like the forex, stocks or commodities market.

However, technical analysis is not perfect. Even though it can be valuable in information, it is crucial to be knowledgeable of the market setting. Technical analysis operates with some set patterns as well which are interfered with by some outside elements like economic reports or geopolitical news. This is the reason why good traders will employ the technical analysis and other methods of market research and come up to a more holistic trading methodology.

Introduction of the different tools is the first step towards ensuring that the Malaysian investors and traders take the first step to venture into the world of technical analysis. Start with easy chart patterns and proceed with the more complex indicators over time. What is so beautiful about the technical analysis is that it exists, is versatile and can be applied to any market, or in other words, to any type of market. By learning to read the charts and knowing the patterns of the charts, you can become an improved trader and you will start making smarter and calculated trades.