TECHNICAL ANALYSIS

Learn to use charts and graphs to identify potential trading opportunities buying, or selling CFD and forex instruments.

THE ART OF IDENTIFYING TRENDS

Technical analysts believe that prices move in trends, and price movements generally follow established patterns that can be partly attributed to market psychology based on the widely-held belief that participants in markets react in a similar fashion when faced with similar situations.

The field of technical analysis is based on three important assumptions:

The price of a security automatically factors in economic conditions.

The impact of events such as interest rate changes, or the latest inflation reports are automatically factored into the currency price through the actions of buyers and sellers in the market.

When it comes to pricing, history tends to repeat itself.

Technical analysts track historical prices and traded volumes in an attempt to identify trends. They use graphs and charts to plot this information, and for this reason are sometimes referred to as chartists. By attempting to quantify historical performance, technical analysts seek to identify repeating patterns as a means to signal future buy and sell opportunities.

WATCH THE VIDEO

Trading on Technicals

This video is designed to introduce traders to technical analysis to demonstrate how you can add these mathematical studies to your trading charts. While this lesson does not require you to have any past experience with technical indicators, it does assume that you have some understanding of trading forex and CFDs.

INCLUDES: OHLC and candlestick price charts, trend identification, and mathematical indicators like moving averages, oscillators or momentum indicators, and Fibonacci ratios. More detailed information about these topics can be found in the sections below.