All About Forex Technical Analysis

All About Forex Technical Analysis - If you know and see certain traders who routinely pay attention to the movement of charts, charts, and others on the forex trading platform, then that is what is called technical analysis.

Technical analysis is often underestimated, especially for people who are often poor across the world of forex trading, because the volatility of foreign exchange rates is not always predictable or other reasons that make it seem to be unbalanced compared to fundamental analysis.

However, that doesn't mean you can't do technical analysis at all. After all, technical analysis is a type of analysis in the world of forex trading that is easy to do.

You don't have to spend hours in front of the gadget to analyze technically through various charts. Just a few hours rest, as long as you don't close your forex trading software window, then you can still monitor the chart using technical analysis.

Candlesticks are the most common type of technical analysis used to apply forex technical analysis methods.

There are several signs in the candlestick that you need to pay attention to, for example, morning and evening stars confirming a near-perfect trend reversal, or shooting stars which are always bearish signals on the foreign currency exchange rate you choose.

In practice, many forex robots can combine candlesticks with other conventional charts for technical analysis, such as bar charts which are usually used to see how much volume of foreign currency transactions are and line charts which are usually also used to see the trend of rising and falling foreign exchange rates. .

The combination of these technical analysis charts results in a unique type of technical analysis, such as the forex volatility tool. Forex volatility tool is a predictive tool for traders to see the movement of foreign exchange rates over a certain period (days, weeks or hours) and compare the volatility trends on certain days.

However, monitoring the rise and fall of foreign currency exchange rates is not the only way of forex technical analysis that you can do. There are also many elements of forex technical analysis that you can calculate and apply in addition to candlesticks, forex volatility tools, and other charts.

The use of various charts and tools in the way of forex technical analysis will not be effective if it is not supported by knowledge of the indicators that you can use in forex technical analysis.

Almost all traders, regardless of whether they are novice traders or traders with long trading experience in forex, are familiar with moving averages as an indicator of forex technical analysis.
This indicator is denoted by the MA50 line, or the line that depicts the average foreign exchange rate within 50 days. If the candlestick breaks below the line, it is a buy signal. Conversely, a break to the top is a sell signal.

There are also traders who use stochastic indicators in the application of forex technical analysis methods. In the stochastic indicator, the upper (oversold) and lower (overbought) lines, as well as the line of price change indicated by %K and %D are important things that you should pay attention to.

If the tip of the %K chart crosses and produces an upward bulge, it is a signal to sell. The upward bulge may or may not break through the oversold line.

On the other hand, if the tip of the %D chart crosses and produces a downward bulge, it is a signal to buy. Just like a sell signal, a downward bulge may or may not break the overbought line.

In addition to moving average and stochastic indicators, there are other indicators that you can use to apply forex technical analysis methods, for example the envelope indicator which is a modification of the moving average indicator, MACD, relative strength index (RSI), TTM trend, and others. .