Structure First: Trend and Levels
Before any indicator, read structure: uptrends make higher highs and higher lows; downtrends the reverse. Support and resistance mark prices where buying or selling repeatedly appeared — useful less as magic lines than as reference points for defining risk ('if it breaks below X, my idea is wrong, exit'). That risk-definition use is technical analysis' most defensible function.
The Core Toolkit
Moving averages (20/50/200) smooth trend and act as dynamic reference levels — the 200-day is the classic bull/bear divider. RSI measures momentum extremes: readings above 70/below 30 flag stretched moves, best used as caution signals rather than automatic reversal calls. Volume validates: breakouts on heavy volume carry more weight than drifts on thin volume. Three tools understood deeply beat twenty applied superstitiously.
What TA Can and Can't Do
Academic evidence for pure chart-pattern predictive power is weak; evidence that disciplined frameworks improve risk management is strong. Trade the combination: an idea (fundamental, flow, or statistical), timed and risk-defined with technicals. Backtest anything you intend to trust, and be suspicious of any pattern that can't survive a simple historical test.