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

Charts Patterns: Reversal Patterns

In this Master Academy educational video and article, we are looking at Charts Patterns, focusing on Reversal Patterns. Charts Patterns A chart pattern is a distinct formation on a chart that signals potential for future price movements Technical Analysts use these patterns to identify current trends, trend reversals and for buy and sell signals There … Continued

Beginner

Trend, Trendlines and Channels

In this Master Academy educational video and article, we are introducing the concept of Trend, Trendlines and Channels.  What is Trend? Markets tend to move in a general direction or trend An Up Trend An up trend is a sequence of higher highs and higher lows In an up trend, price will rally to … Continued

Beginner

Support and Resistance

In this Master Academy educational video and article, we are introducing at the basic concepts of Support and Resistance. Support and resistance represent key junctures where the forces of supply and demand meet. Support Support is the price level at which demand is thought to be strong enough to prevent the price from declining further … Continued

Beginner

Introduction to Technical Analysis

In this Master Academy educational video and article, we are looking at an Introduction to Technical Analysis, elaborating on the brief introduction we had in our article Fundamental vs. Technical Analysis We will look here at: What Technical Analysis is, the Principles of Technical Analysis Chart types Time Frames Principles of Technical Analysis Technical Analysis … Continued

Beginner

Fundamental vs. Technical Analysis

In this Master Academy educational video and article, we are looking at the basics of the different approaches to analysing financial markets that come under the titles Fundamental Analysis and Technical Analysis. Fundamental Analysis There are FOUR subcategories that come under the banner of Fundamental Analysis: Macroeconomic Data Analysis Microeconomic Analysis and Corporate Data Central … Continued

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