Good morning,
Forex technical analysis is used by traders to analyse the markets to provide an understanding of historical data to produce entry points in the market.
Technical analysis is a key method of forecasting price movements, especially in the forex market. Whereas in the other markets, such as stock or futures, technical analysis isn’t used as much.
Technical analysis has existed in the market ever since we have had supply and demand that drives the market movement. This type of analysis is used mostly on charts due to the need for historical price data.
For most technical traders, the plan is to understand the current market conditions in order to analyse trade setups. To identify the major patterns, traders have developed techniques using analysis such as support and resistance alongside a multitude of technical indicators to trade.
LEARN FOREX TECHNICAL ANALYSIS LIKE THE BIG BANKS!
There is nothing easy about analysing and trading the financial markets, there are so many variables which affect price movement. Researching all the variables is an incredibly difficult task.
TA is something traders can use as a short-cut to analyse all the variables by focussing on historical price data. It allows traders to analyse potential trade set ups in a relatively short period of time. All the technical analysis we use here at Platinum is based on price action techniques to provide you with the ability to chart anything and trade any currency pair you want.
Traders will tend to favour trend patterns in the market, markets move in upward trends called bullish patterns. They also move in downward trends called bearish trends, a horizontal trend is called a ranging market.
Ranging markets are where the market is quite neutral going from swing highs to swing lows without really getting into any specific type of trend. This means that the bulls and bears are equal, in other words this means the buyers and sellers are equal in power.
Technical analysis is the method of analysing the markets by using historical price data to identify future patterns and entry points in the market. Price patterns are usually identified using candlestick patterns with various techniques such as support and resistance with a variety of technical indicators depending on the strategy.
We believe in technical analysis here at Platinum, and would recommend learning how to use this analysis in the correct way. Once learned correctly you can profit from the market on a consistent basis.
LEARN FOREX TECHNICAL ANALYSIS LIKE THE BIG BANKS!
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Nisha Patel
Live from the Platinum Trading Floor.
