Technical Analysis is a vast subject that offers valuable insight on spotting profitable trading opportunities.
Not all professional traders use technical analysis in their trading. However, when trading options on stocks and indexes, I believe technical analysis is another powerful and proven tool to have in your arsenal that will help increase your odds for success.
One important point about technical analysis is that is it very subjective. Some traders may find exponential moving averages more useful than simple moving averages. There is no right or wrong with technical analysis, because every trader is different.
Many factors can be incorporated and adjusted in a technical analysis system depending on a trader’s overall style of trading, time frame, and appetite for risk.
Some of my favorite technical analysis methods consist of: