- Technical analysis is a method for projecting the future direction of the price of financial market assets. Furthermore, it can also be used in the setting of potential price targets. Also read our Expert forex market forecasts
- The direction of future prices are determined by analysing previous market data; primarily price, time and volume.
- Technical analysis predictions are rejected by proponents of Efficient Market Hypothesis and Random Walk Theory, which predicts that future prices are effectively unpredictable.
- Technical analysis uses many different tools, methods and techniques, but primarily it employs price charts plotted over time to identify price patterns and trends.
- For this reason, Technical Analysts are also referred to as Chartists.
In this section we will provide articles to help develop the reader’s technical analysis knowledge base and to highlight ways in which technical analysis tools can be used for successful trading decisions.
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AUDUSD has been trading bearish for 2018 and by the looks of it, price can be unfolding a big, bearish impulse, down from 0.814 area. An impulse is a five-wave devlopment which tells us where the trend is going, and in our case we see it going lower. We specifically see price at the start … Continued
GBP crosses in focus into key Brexit vote GBPAUD hits our downside target and rebounds GBPNZD rebound less impressive EURGBP cautious upside breakout attempt GBPCAD trapped sideways US$ Index holding key monthly support Euro future caped by resistance AUDUSD fails back from below resistance, poised at key support
Hi traders, German DAX can be unfolding a bigger, overlapping decline down from 11692 level, which we see it as a EW ending diagonal. A EW ending diagonal is a powerful reversal pattern, that consists out of five waves, and each of them has three sub-waves. That said, at the moment we see price unfolding … Continued
We had a positive start to the trading week in regards to equities. Major indices were boosted from the positive EU Economic Summit with firm gains on return from the Thanksgiving weekend and with a boost for retailers from Black Friday and Cyber Monday sales. Brexit was on the agenda at the beginning of the … Continued
Hello traders, No bullish evidences on Crude oil yet. That said, seems like Crude oil still can see new lows below 50 area, but carefully because it’s the final wave 5 of 5), so bounce may occur anytime. Watch out for spikes as well. However, as long as Crude oil keeps trading within bearish Elliott … Continued
Hi traders, EURGBP made a sharp rally recently, away from 0.865 level which was quite expected, as we were tracking final stages of a bigger corrective wave B). This recovery we now labelled as wave 1 of a bigger bullish rally, which looks to have found a top and resistance at the 0.894 level, from … Continued
Over the weekend PM May struck a defiant tone with defending her Brexit deal while a growing threat of a leadership challenge looms. She stated there has not yet been enough letters to trigger a no confidence vote. So far, 42 Tory MPs have provided their letters for a no confidence vote which is 6 … Continued
EURUSD looks as it has ended its complex decline, down from September highs as we see all three waves W,X,Y unfolded. Also price made a recovery at the 1.122 level, indicating that wave Y found a low, and that a minimum three-wave reversal to the upside is now in play. In such case, we would … Continued
Stocks rallied yesterday, which has been technically expected as we see E-mini SP500 futures moving down into fifth wave of decline with a wedge shape. This pattern was broken to the upside, so market is now in a three wave corrective bounce. It’s a temporary recovery that can be slowed down at 2755-2770 area, but … Continued
We see some serious and very strong dollar move at the start of a new trading week. EURUSD just went below August 2018 levels quite aggressively which seems like an important break-down, but until we see a close below that price it can be too soon to call that a breakdown! Also, an intraday chart … Continued
Bitcoin Cash made an impulsive rally, but still can be a part of a three-wave a-b-c regular 3-3-5 correction. We still think that Bulls are not ready yet, especially because of a bearish looking BTC and friends, so we assume that BCHUSD can be making just a bigger flat correction in wave 4 of a … Continued
The GB Pound FX rate has seen a strong rebound against major currencies from late October, after positive soundings from the top of the UK Government regarding a Brexit deal, of particular note has been the GBPUSD rally. The GBPUSD advance has been reinforced by a weakened US Dollar (after recent October strength), driven by … Continued
AUDUSD is reversing higher for the last two weeks, moving into a new corrective recovery which can be wave four of a higher degree. Fourth waves can retrace back to the area of a former wave four which in our case is at 0.7451, so there is room for more upside this month. AUDUSD, Daily … Continued