What is Technical Analysis?

What is Technical Analysis?

Technical analysis is a common method for predicting movement or trend of a price. The basic technique of this category of analysis lies in calculating the relevant market price movements; assuming that future price movements can be determined by studying historical data. Traders make their predictions by building a graph of price changes in certain time intervals.

In simpler sentences, technical analysis is a historical analysis of prices that helps traders determine price trends that are most likely to occur in the future . Traders who use this analysis method will use technical indicators that are available in the trading platform. This indicator is very diverse, so that every trader can develop his trading strategy on any instrument based on one indicator and another.

Technical analysis methods are also divided into several types. One of the most common is candlestick analysis. The essence is to find standard figures for reversal and continuation of trends through historical prices ( head and shoulders, wedge, double top, triangle etc.). When one of these patterns appears on the chart, the trader can predict not only the next price trend , but also the jump or lunge.

There are several independent programs that can be used for this technical analysis. The Autochartist program automatically analyzes the market through technical patterns that are formed. When the pattern appears, the program will give a voice signal, so that the trader does not have to always be in front of the computer screen, but rather responds to the message given by the program. Autochartist does not require installation, this program works like a web application, even the indicators can be integrated into the MetaTrader trading platform.

Technical analysis is a bit complex than fundamental analysis . However, for beginner traders , maybe this method of analysis is more recommended, because here they will be more helped by the availability of various programs, indicators and automated advisors .

We offer 2 technical analysis services that you can use:

  • Price Prediction from Trading Central .
  • Trading signals from Autochartist .

Want to know the full technical analysis?

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