Forex Stock Exchange Forum
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Forex Stock Exchange Forum

Forum About Trading on Forex,Stock,Binary Options, CryptoCurrency and NFTs


Crypto Kong
advertisement

You are not connected. Please login or register

Technical Analysis

Go down  Message [Page 1 of 1]

1TECHNICAL - Technical Analysis Empty Technical Analysis Sat Sep 05, 2015 5:52 pm

Pepper



Technical analysis is the study of prices over time, with charts being the primary tool. This is done by comparing current price action with historical price action to identify patterns that can suggest probable future price movement.

Technical analysis helps traders to determine trends and acts as a signal or indicator to either buy or sell. Technical analysts believe that the historical performance of a financial instrument indicates the future performance on that instrument.
Trader Types

In order to understand which charts you should be using, it is important to determine the type of trader you are by understanding the difference between trader types.

Short Term
Short term traders are intraday traders who get in and get out of the market quickly by constantly opening and closing positions
 
Medium to Long Term
Medium to long term traders are traders who keep their open position on the market for a long period of time (weeks/months)

Chart Types
There are 3 types of charts:

Line Chart
A Line Chart simply shows a line from one closing price to the next closing price
The Line Chart is not specific to the period of the chart
A Line Chart shows us the general direction of the instrument over time
[You must be registered and logged in to see this image.]

Bar Chart
A bar chart goes into more detail by showing the opening and closing prices in addition to the high and low of the specified period using a straight bar/line format
[You must be registered and logged in to see this image.]

Candlestick Chart
A candlestick chart also shows the opening and closing prices in addition to the high and low of the specified period and resembles a candlestick. This type of chart is easier to interpret and identify pivot points or reversals in a trend
[You must be registered and logged in to see this image.]

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum