Technical analysis helps to research previous price movements, and to evaluate with specific statistical method of calculation. Also, it helps to guess prices in the future. There are all softwares ,which is necessary for making technical analysis, in MT4 and similar forex platform applications. It is possible to make this charts and analysis on an individual basis. Basic points ,which is need to be known, are charts of support, resistance and trend. After that, many indicators support you to transact.
Transaction period should be chosen carefully to open a transaction from the accurate point, and to close lucratively. You can have positions ; daily, instant and weekly according to frequency of transaction. And you can use the most suitable method of analysis. If you are an investor who think to transact in long term, to make technical analysis by looking five-minute chart mislead you. Contrarily, if you transact in short term, minute chart should be preferred instead of weekly chart or montly chart. A method of analysis is not enough to be succesful in markets. It shouldn’t be forgotten that a lot of factors ( political, economic, technique, psychologic.. etc. ) might be effective. News flow and data flow should be followed, and you should be focus on analysis.
Explaining indicators will be useful to understand better technical analysis.
What is indicator?
Indicator gives hints about direction of market while transacting in Forex, and it is based on technical analysis. It is an assistant power for forex transaction, and gives some ideas about transaction points, closing of current position, next levels of prices.
These indicators can be found in platform. Also, you can provide them by using many different ways from the internet
The most used indicators;
• MACD ( Moving Average Convergence/ Divergence )
• Bollinger Bands
• RSI ( Relative Strength Index )
• Moving Average
• Stochastic Oscillator
Indicators shouldn’t be appraised as solo, and we shouldn’t expect absolute gain.
As you know, markets are affected by a lot of factors. Being succesful with just technical analysis is not possible. You need to understand indicator which you want to use. Also you need to try it before transacting in real account.
- Date: 28 December 2016 Wed 10:15
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