Technical Analysis and Behavioral Finance

Explain the purpose of technical analysis and how it differs from fundamental analysis.

Read and interpret basic stock price charts, including support, resistance, and trend lines.

Interpret key technical indicators such as moving averages, RSI, and MACD.

Explain the importance of trading volume in confirming price trends.

Describe common cognitive biases that affect investors (e.g., overconfidence, herd mentality, loss aversion).

Explain the use of stop-loss orders and position sizing to manage downside risk.

Explain the importance of maintaining an investment journal to track decisions and learn from outcomes.