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What is Forex Technicals Analysis? | Forex MT4 Download

25 of May of 2020 18
What is Forex Technicals Analysis?

You don’t know how to analyze Forex charts in MetaTrader? Or do you want to learn how to earn on the stock market through technical graphic analysis?

Then you’re in the right place!

You don’t need to spend your money on a graph analysis course or an online Forex technical analysis course!

This article is dedicated to traders who want to learn how to use technical Forex analysis in practice, and to perform graphical analysis of stocks on the stock exchange.

Even if you are a fundamental analysis trader, this article can be very useful for you. Yes! Because technical analysis and fundamental analysis can and should be combined in Forex and CFD trading.

For many successful traders, this is the best way to consistently and reliably analyze the information available on the Forex market or even on the stock index CFDs in order to make the best possible decision.

You will quickly understand why!

In this article, we will address, among others, the following topics:

  • What is Forex Technical Analysis – Forex Graphical Analysis
  • The Origin of Graph Analysis on the Stock Exchange
  • Principles of Technical Analysis
  • Types of Charts in Forex Technical Analysis
  • Forex Technical Analysis – Japanese Candlestick Chart
  • Forex Technical Analysis – Graphical Analysis Indicators
  • Forex Chart Analysis – Tools to Identify Forex Chart Patterns
  • Technical Analysis – Forex Chart Patterns
  • Technical Analysis with Multiple Time Frames (MTFA)
  • Graphical Analysis of Stocks – Graphical Analysis Stock Exchange
  • How to Do Forex & CFD Technical Analysis
  • The Best Forex Graph Analysis Software
  • Advantages and Disadvantages of Using Technical Analysis

In Forex and stock exchanges, as in many other financial markets, technical analysis using Forex charts is a recognized method of forecasting and anticipating prices, as well as a Forex Trading technique .

To find out everything you need to know about Forex technical analysis and other financial markets, continue reading this article very carefully, as we can guarantee that you will clarify all your doubts, it was made with you in mind!

This analysis is a method of forecasting the price based on the historical behavior of the asset to be traded.

In particular, we analyze:

  • The prices
  • Trading volumes
  • Os time frames

To carry out the technical analysis, traders resort to the use of technical indicators: mathematical and statistical, as well as graphic indicators. The conclusions reached in this way help us to make decisions about their positions in the stock market.

In fact, technical analysis can be divided into two main groups:

  • Statistical analysis: it is the analysis of technical indicators that are generally calculated from mathematical formulas linked to stock market prices.
  • Graphical analysis: it is the analysis of price curves, which seeks to find particular configurations.

Some traders are specialized in only one of the two groups, others use both, thus both end up being completed, thus obtaining better trading confirmations.

In this way, technical analysis uses different tools to determine the most likely price movement:

  • Graphic Patterns

To carry out their technical analysis, traders use tools such as horizontal lines, trend lines and Fibonacci retracements to identify popular chart figures . Among the figures that can be analyzed through technical analysis, we find, for example, the symmetric triangles and the consolidation figures. These formations are able to highlight the behavior of buyers and sellers in the market.

  • Japanese Candles Data

You can also analyze the information given by the Japanese candles to quickly identify opening, closing, high and low prices over a given period of time. Like charts, candles help the trader to identify the behavior of buyers and sellers in a short time.

  • Technical indicators

Finally, to complete their analysis, traders use technical indicators to better understand current market conditions and their price trends. For example, there are many indicators and oscillators that serve to identify when a market is overbought or oversold, that is, bought or sold in excess. Other technical indicators provide indications as to whether the market will tend to an upward or downward trend.

It can be said that the basic foundations for carrying out a technical analysis applied to trading are based on 5 elements, namely:

  • Your opening price
  • Your maximum price
  • Your minimum price
  • Your closing price

The fifth point is volume, but this can be a problem in the Forex CFDs market, as it cannot be measured in the same way as for stocks, commodities and even Forex futures (Futures Contracts).

Technical analysis on the stock exchange is, above all, the analysis of a graph, whether it is a graphical analysis on the stock exchange, or whether it is Bitcoin technical analysis in the case of the cryptocurrency market, for example.

We often confuse ” Learning Forex ” with “stock market analysis” or even “technical analysis of stock market charts”.

In this article, we will start teaching you the technical analysis applied to trading and explain how to learn technical Forex analysis (for example, the EUR / USD pair analysis) and where to start. You will learn as follows:

  • How to do the analysis on the Forex Chart?
  • How to analyze Forex like a trader? (technical analysis EUR / USD, for example)
  • How to do a graphical analysis? (example CAC40 graphical analysis)


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