Best technical analysis or option trading strategy.

Technical analysis is an analysis done by looking at previous price and volume. The price can be read from charts. When you see a chart you can see the price trend. Using technical analysis you can predict future price because history tend to repeat itself.

There are many technical indicators you can use, like support and resistance, Bollinger band, moving average, RSI, MACD, Elliot Wave, Fibonacci, Pivot point, Ichimoku kinko hyo, Momentum, Accumulation/distribution and many more. You can not use only one indicator. You should use several indicators so the prediction has bigger probability to be right. For example you can combine support and resistance with RSI. If the price is near resistance and price is overbought you can try selling the asset. That is the best technical analyses for me.

Support is lower price level that seems to be hard to break. Resistance is upper price level that seems to be hard to break. Sometimes it needs several attempts to break the price level. If it eventually breaks the price level it will usually continue the momentum. So if a support level is broken you should sell and if resistance level is broken you should buy. But before you buy or sell, you need to confirm the trend by waiting the price to close on one single bar.

You can use support and resistance level together with RSI. When RSI is below 30 it means that the price is oversold and if it is over 70 it means overbought. If price breaks support level but it is already oversold you need to think twice about it because it might bounce back.

Technical analysis can be used to help your option trading. But it should not be used as the only indicator.

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