Technical analysis
Forex Technical Analysis

It comes down to identifying the most suitable moment to enter the market in order to "buy cheaper, sell more expensive" - this can be the detection of a trend reversal point, determining whether its direction is currently suitable for entering the market, or, for example, identifying potential opportunities to earn money even during the flat period. On an upward or bullish trend, you can earn on the growth of the price of a currency pair, as well as on temporary pullbacks (corrections). In the event of an unexpected price reversal against open transactions, the trader will have to independently determine at least the approximate time for closing profitable transactions. Use manual closing, Stop Loss orders (loss fixing) and Take Profit (profit). The search for the closing point is based on the same technical analysis rules.
Basic postulates of technical analysis

For ease of application of technical analysis, the trading period from the start of trading on Monday to their completion on Friday is divided into equal intervals - time frames. Thanks to them, it is possible to analyze the most significant parameters. These include the price at the time of opening / closing the period, price minimum / maximum, volumes.

The basic postulates of technical analysis are the foundation of almost any trading strategy.
Prices take into account all
Their change is influenced by absolutely any political or economic factor (sometimes climatic). The degree of influence is determined by the significance for the state whose currency is being traded.
Trending prices
The value of currencies is constantly changing. Resulting currency pairs grow up, then fall in price.

At certain periods, flat may occur - a time of uncertainty when the price does not change much over time.
History repeats itself
Trend reversal, flat market conditions are observed at the same price levels. Once a noticed trend can be repeated many times, which traders use in trading systems.
Standard and non-standard time frames
The trading platform offers several standard time periods - from M1 (minute) to MN (month). The schedule is divided into nine-time frames, in addition to the extreme ones, M5, M15, M30, H1, H4, D1, W1 are used. The dynamics of the visual change in prices depends on the choice of the period. Short-term trading systems use time intervals no older than M30. Sometimes traders' resort to the formation of non-standard time frames. Their task is to compensate for the shortcomings of typical values. For example, if the indicator on H1 displays a belated value, and on the M30 it is "in a hurry". Presumably "average", i.e. M45 time frame should show the most accurate time for opening deals.
Technical Analysis Tools

Periodic repetition of previously occurring events allows you to prepare for them and, in a timely manner, identifying a tendency to return to previous positions, to make a profit. The trader's arsenal is full of tools: support / resistance levels, ascending and descending channels. The terminal has built-in functions for drawing the necessary lines on the chart of the currency pair, access to them is provided from the "Graphic Tools" panel.

In addition to standard lines, tools are offered:

- Grid, fan, arcs, time zones, Fibonacci channel
- Grid, lines, Gann fan
- Fourier series

The listed trading "add-ons" are an attempt to mathematically predict the subsequent price movement based on a technical analysis of the previous dynamics of market trends. The use of channel tools allows you to trade at the time the price opens inside the channel. Channel lines indicate that correction correction is most likely to occur. All technical analysis tools are based on mathematical calculations and they are used mainly as a basis for determining trends, and more precisely, the moment of entry into the market is determined by indicators.
The use of Japanese candles

Forex technical analysis includes the control of such components of Japanese candles as:

◆ The body of the candle. Color indicates the direction of price movement. By default, white is used for growing candles, and black is used for declining ones.

◆ candle size. It indicates the strength of the pressure of sellers / buyers. Doji candles meet when the opening price is equal to the closing price.

◆ The presence of the tail and its size. Displays the indecision of sellers / buyers in the market, which leads to price fluctuations around a constant level.

Figures are made up of different types of candles; their combination can be used to determine the current trend (trend), the approaching reversal. In the absence of certainty over the H1 period candle, the trader switches to lower time frames and thereby provides a more accurate Forex technical analysis. If we are talking about scalping, they act the other way around - they work mainly on younger TFs, and the older people look at the general trend.

Also, candles reflect the volatility of a currency pair. If you switch to periods from H4 and higher, it becomes clear in what range the price moves in the current month or this week, is there a risk of a reversal, the market entering a long-term flat. The exact result is achieved through additional tools, search patterns, indicators. When a trader expects a long-term perspective, a more dynamic picture on TFs younger than H1 allows you to respond more quickly to signals that appear at intervals of H4 and above.
Graphic shapes
10 basic figures of technical analysis are applied

Triangle. There is bullish, bearish and symmetrical (the latter means a continuation of the previous trend).

Diamond. Visually on the graph, a semblance of a rhombus is formed, the vertices of which abut against resistance / support levels.

Double top. A reversal pattern, suitable for use as a separate tool or as an additional signal.

Wedge. One of the "long-playing" figures can be formed over a long period, which is convenient for use in long-term trading strategies.

Triple bottom. Allows you to determine the breakdown direction during the flat period.

Triple top. One of the tools for determining the trend reversal point, working at the time of consolidation.

Double bottom. Another figure indicating a change in the downward trend to the upward one.

Flag. Observed after news impulses, indicates its continuation in a previously defined direction.

Saucer. The figure used by lovers of long-term trading.

Pennant. A flag-like pattern with a similar definition.
Types of Indicators

Indicators are conditionally divided into several categories:

Trending. They show the direction, strength of the trend, the probability of a reversal.

Oscillators. Display a mathematical model for measuring the rate of change in the market.

Bill Williams and Volumes. They work on a "separate theory", but have rather high efficiency in short-term and long-term trading.

The key task of the indicators is to indicate the recommended direction for entering the market (Buy or Sell orders), indicating volatility for forecasting profit. Without their use, the trader will have to focus on "simpler" signals - support / resistance levels, trend channel lines.

Many trading strategies contain rules for combining the readings of various indicators. When conditions appear on one of them (conditionally main), the trader is looking for confirmation on others. And only with a coincidence a decision is made to open a transaction. If not, wait for the next signal of the "main" indicator.
Made on