In our Module on Technical Analysis, we go into full details on what exactly is technical analysis, how you can identify pattern on charts, and in your trading.
Written by: Yokoyi
Chapters on Technical Analysis
1. Dow Theory
Although Dow theory is not directly linked to Forex trading, but if you are a technical trader, you must understand its basics. We explain it in full detail.
2. Types of Charts in Forex
In this chapter we explain the various chart types that technical traders can use to visualize the markets, the most common is candlestick chart.
3. How To Read a Forex Chart
We explain exactly how you can use the forex chart, which data points to look at.
4. How To Identify Price Trends on a Chart
This is really important chapter to understand how exactly does the trending market looks like on chart. It can be straight in one direction, but mostly it is zig zag in a direction. So, we explain in detail how you can look at it.
5. Support & Resistance in Technical Analysis
Understand exactly how support & resistance looks like on a price chart & how to trade it.
6. Price Action Trading (Trading Without Indicators)
Learn how to trade price action without using any indicators. Mostly, as a trader, you should avoid any indicators, and by understanding what the price is doing, you can easily identify patterns.
7. Fibonacci Retracement
Fib Retracements are mostly used by traders to analyze important retracement points in a trend from where the price can continue in that direction. Read our complete chapter to understand it.
8. Simple Moving Average
Simple Moving average or a collection/ribbon of the SMAs can help you visually see the trend. Some traders use basic crossover strategies in their trading. This guide is simple explanation of Moving Averages.
9. Exponential Moving Average
Exponential Moving average is similar to SMA, but it assigns more priority to recent price.
10. Bollinger Bands
This indicators is mostly used by traders to identify deviation in the price from a standard SMA or EMA. Generally, traders use it as a reversal signal for counter trend trades, or as a signal for trading continuation of the trend when price is near the middle band.
11. Relative Strength Index
RSI is a momentum indicator used by traders to identify overbought or oversold points in the markets.
12. Moving Average Convergence & Divergence (MACD)
MACD is also a momentum indicator that basically plots the relationship between 2 moving averages (the values that you can set, generally a slow & a fast EMA).
13. Volume Indicator
Generally, volume indicators are not useful for forex traders because there is no central volume data. But we will still explain how it works if you are using it for some other CFD or instrument.
14. General Forex Chart Patterns
In this chapter we cover the important chart patterns (the basic ones, not the fancy ones) that you can identify on the chart to look for signs of reversal or continuation on the price chart.
15. Candlestick Patterns
If you are a pure price action trader, certain candlestick chart patterns at important price levels can help in trading & act as signals for entry or exit. For example, many traders use Engulfing candlestick patterns. We cover important candlestick patterns in this chapter