Technical Analysis

  • 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 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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Beginner

Using Fibonacci in Your Trading

The Fibonacci sequence of numbers has been used in trading strategies for many decades now and is a valuable tool in the identification of important levels to monitor when trading markets. In this article, we will look at: The historical and mathematical basis of the Fibonacci numbers An outline of the various Fibonacci numbers used … Continued

Beginner

Technical Analysis – Glossary

Below we provide a glossary of key Technical Analysis terms. These range from the basic, through intermediate, to more advance terms used in the Technical Analysis approach to markets. Here we start with those terms beginning A through to P. You can click on a letter to find your section quicker. A – B – … Continued

Beginner

Technical Analysis – History

Technical Analysis has a long history and in Europe can be traced to the 17th century writings of Joseph de la Vega about the Dutch Stock markets. In 18th Century Japan, Homma Munehisa, a very successful rice futures trader developed the Candlestick trading approach, which is still used today. Charles Dow Jose De La Vega … Continued

Beginner

Technical Analysis – Principles

There are three basic tenets of technical analysis as follows: Market price action discounts everything. All information that is both relevant and available is already built into current prices. Price action moves in trends over various time frames. These trends are either down, up or sideways. History will tend to repeat itself. The common factor … Continued