How to trade with forex technical analysis

On the Forex Exchange , as in many other financial markets, the Best Trading Mentor. Study of price technical analysis is a recognized method of forecasting and price anticipation, as well as a Forex trading technique . 

Forex Technical Analysis

For those of you wondering "what is technical analysis in the stock market?". We will discuss the origins of this method of analysis.

Technical analysis of financial markets has existed since they were governed by the law of supply and demand. The first traces of technical analysis date back to the 17th century with Dutch traders. And the 18th century with Japanese rice traders. At the end of the 19th century, technical analysis began to become popular with traders thanks to the founder and editor of the Wall Street Journal, Charles Dow.

Among his contemporary compatriots are other pioneers of technical analysis such as:

Ralph Nelson Elliott, the founder of the famous Elliott theory

William Delbert Gann, the founder of Gann's theory of angles

Richard Demille Wyckoff

 

Forex Market Technical Analysis

Since the forex market is very liquid, it attracts all types of traders. From scalpers on one-minute charts to swing traders on daily time frames, and intraday traders on hourly charts. \.

Forex technical analysts can use all the different tools at their disposal, such as chart patterns, Japanese candlestick patterns, and technical indicators. For now, let's take a look at one of the momentum indicators listed above.

Stochastic Oscillator

The stochastic oscillator is a very popular forex technical indicator in technical analysis. As part of the momentum indicators, it can be used to identify potential market reversal points.

To add the Stochastic Oscillator to your technical analysis chart on the MetaTrader platform, simply follow these steps:

Open your MetaTrader 4 or MetaTrader 5 platform

Click on the 'Insertion' or 'Insert' drop-down menu at the top left of your screen and select 'Indicators' or 'Indicators'

Then select 'Oscillators' or 'Oscillators', then click on 'Stochastic Oscillator' or 'Stochastic Oscillator'

Finally, press Ok

Technical Analysis or Forex Chart Analysis

In the stock market, technical analysis is nothing more than the process of determining which direction prices will take. Introduced in the 19th century by Charles Dow, technical analysis is still used today by traders to win in the stock market.

As the name suggests, technical analysis is only based on the technical aspect of the market. And therefore uses only forex charts as well as historical data. Here the prices, the volumes traded and the open interests are particularly analysed.

To carry out technical analysis, traders use technical indicators: mathematical and statistical. As well as graphical indicators. The conclusions thus obtained help them to make decisions on their stock market positions.

Graphical analysis: also called chartism, it is the analysis of price curves alone. In search of particular configurations.

Some traders specialize in only one of the two areas, others use both in complementarity.

Technical analysis thus uses different tools to determine the probable evolution of a course on the financial markets.

Chart patterns, trend lines, support and resistance levels.

Indicators: volume, stochastic, moving average.

Candlesticks Or Other Graphical Representations

such as dots and patterns , bar charts, kagi etc.

Graphical representation is the basis of technical analysis. It is sometimes difficult to navigate the many indicators of technical analysis. Fortunately, it is not essential to know them all to invest in the stock market and forex. Here we help you know the basics of forex charts.

The interest of forex lies in buying or selling currencies at the right time in order to generate profits. If an imbalance occurs in the forex market. Forex charts help determine the right time to enter the market. Either way, forex charts will be a great tool for trading.

Read More: Trading Strategies In World Stock Market