Technical Analysis & Technical Trading

Technical Analysis

Technical analysis is the study of price movement.

 

Technical trading has many diff​erent factors.

 

What Is Technical Analysis?

Technical traders observe current price action, previous price movement in the market and then determine what the market is going to do. The fact markets react in similar fashion at similar places in the past is not by chance or mistake.

These are what we call calculated actions by many traders who use these levels as levels of opportunity. Trading technically is all about history. This is why it is so important to learn about Forex history.

Usually what happens before is what happens again. This is called cyclical movement. If there was an influx previously at a certain level, it will probably happen again, this is the general belief.

 

Why?

Because everyone looking at the chart can see it and will think similarly.

Technical traders look for

  • Patterns 
     
  • Previous movements
     
  • And base their trade on this analysis.
     

Technical analysis is subjective however because traders pick their own previous levels. This is why this way is not perfect on its own. Traders may pick similar levels but not necessarily the same.

If you want to know more about technical analysis, Click here to watch a video all about technical analysis