Technical analysis is the study of UK 100 price charts to anticipate where the market may move next. Rather than focusing on the underlying fundamentals, technical traders examine the structure of UK 100 price itself — trends, support and resistance levels, and the patterns that tend to repeat across the Indices market. The goal is not certainty but probability: stacking evidence so the odds favour your trade.
Start with the trend. On any UK 100 chart, higher highs and higher lows define an uptrend, while lower highs and lower lows define a downtrend. Mark the key support and resistance levels where UK 100 has repeatedly reversed, because those zones often produce the cleanest reactions. Layer in chart patterns — triangles, flags, double tops and bottoms — to time entries around those levels.
Indicators add a second dimension to UK 100 analysis. Moving averages smooth the trend, RSI flags overbought and oversold conditions, and MACD highlights momentum shifts. Use them to confirm what price is already telling you rather than as standalone signals. Combine a clean read of UK 100 structure with one or two indicators, and always confirm your bias on a higher timeframe before acting.