Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to accomplish a technical analysis with the Forex

Currencies / Forex Trading Dec 05, 2020 - 11:58 AM GMT

By: Submissions

Currencies

In the preceding chapter we explained that to trade correctly with the Forex it is necessary to complete a daily technical analysis of the financial movements in the short and medium term.

This analysis is essential as it will help you to understand and anticipate certain effects and, in this way, consequently to improve your investments whilst keeping a good overall view of the market.


The principle of technical analysis

Far from being reserved for specialists, technical analysis only requires a little attention and concentration and, with the help of simple charts, enables you to assimilate the main movements of the rates on the foreign exchange market. Also, as we will explain in this chapter, the trading platforms make available to you free of charge certain easy to us but high performing tools that you simply have to interpret.

Of course, the information that you can extract from this analysis is not all you should take into account when you start speculating. Other factors, less material, enter into your decisions and you should learn to trust your instincts in order to anticipate the coming market rates. 

A technical analysis is however still very interesting as it enables you, through a study of the past trends, to learn and anticipate future trends by understanding the simple rules.

Using this analysis you can therefore limit your risk and focus your choice on the more valuable stakes of your chosen pair. 

Although strongly recommended, this technical analysis is not absolutely necessary to trade on the Forex. Your personal experience and intuition can be enough to accomplish successful operations.

Important! To speculate on the oil market and the movements in the price of black gold it is imperative to know how to complete or interpret a technical analysis. For this you must of course be able to read the charts as well as anticipate future movements in the price through understanding which factors influence the rise and fall in the oil rate. Here we offer you the opportunity to learn more about this together with some advice for achieving a pertinent technical analysis on crude oil trading.

What is the point of technical analysis?

Technical analysis serves to help you predict the coming trends on the Forex. By anticipating future movements of the rates you will be able to take a position to sell or buy a given currency pair.

However, the technical analysis will also indicate the volatility of a particular rate. This volatility should be taken into account when choosing the trading tool you will use. When you encounter a strong volatility, strong movements either up or down, it is better to trade the particular currency pair using a binary option in order to benefit from a short term profit. To the contrary, a relatively weak volatility is the sign of a clear trend which offers the security necessary for a more traditional style of trade.

How can I learn to accomplish a good technical analysis?

In order to familiarise yourself with the different analysis techniques we will study all the criteria and information to analyse in order to better understand the financial movements and their explanations. Amongst other things we will look at prices and volume, the different charts, trend lines and other performance indicators such as support and resistance levels and daily and weekly fluctuation channels for the different currencies rates.

All these indicators are necessary for a good understanding of the market and to master risk optimisation. 

Once you have completely mastered these different factors of the Forex it will no longer hold any secrets from you and you will be able to trade with complete confidence.

By Andrew Sanchik

© 2020 Copyright Andrew Sanchik - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in