Technical Analysis Fundamentals
Chapters in this video
- 0:00 Fundamental vs technical analysis
- 1:47 The "price and volume only" exam trap
- 2:13 Three core assumptions of chartists
- 3:05 Uptrends, downtrends, and the hammock rule
- 4:08 When a trend is actually broken
- 4:36 Support, resistance, and breakouts
- 5:14 Role reversal: broken floors become ceilings
- 5:53 Rapid-fire exam recap
What this video covers
- The exam-critical distinction between fundamental analysis (financial statements, intrinsic value) and technical analysis (price and volume only)
- The three core assumptions of technical analysis: the market discounts everything, prices move in trends, and history repeats itself
- How to draw an uptrend line by connecting the lows, and a downtrend line by connecting the highs (the "hammock" memory trick)
- What it actually takes to "break" a trend: price action crossing the trend line, not just slowing momentum
- How support acts as a floor and resistance acts as a ceiling, and what a breakout means in practice
- The role reversal concept: broken support becomes new resistance, and broken resistance becomes new support
- Why chartists believe price action alone gives them everything they need to make a trading decision
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. When you're ready to drill the topic, the full Series 7 course adds adaptive practice questions and spaced-repetition flashcards.