What is Technical Analysis? | FP Markets скачать в хорошем качестве

What is Technical Analysis? | FP Markets

Technical analysis has experienced rapid growth over the years, a technique involving the assessment of historical price and volume data to help forecast trends in the financial markets. Ultimately, a number of assumptions fall under the umbrella of technical analysis: Price movement is determined by the interaction of supply and demand. Technical analysts assume that price discounts everything—which includes things like news, emotions, and expectations. Price action moves in trends. Trends occur on all timeframes in the sense that the market is fractal. Some last an hour, others persist for weeks, months and even years. Price patterns are also fractal. We can have a monthly triangle pattern form on the daily timeframe, and the same pattern form on the 5-minute chart. And finally, that History repeats itself—it’s believed traders will behave similarly to the way they have in the past. Technical traders, or commonly referred to as ‘technical analysts’ or ‘chartists’, work with a number of technical tools to help decipher market action, typically through price charts. A chart, or price chart, is a graphical display of price data and represents the cornerstone of technical analysis. A chart offers several timeframes to work with, including long-term time periods such as the weekly and monthly timeframes, right down to 1-minute timeframes. Common chart types technicians employ are: The Line Chart. The Bar Chart. And the Candlestick Chart. All three charts contain a y axis, which is the vertical panel that houses price scale, and an x axis: the horizontal panel along the bottom of the chart which represents time scale. The line chart is the simplest of all charts, consisting of a single line joined by consecutive closing prices. This type of chart is particularly useful when studying long-term time horizons. The bar chart is a little more complex. Unlike the line chart, which displays only closing prices, the bar chart shows the open, high, low and close prices. The open simply refers to the price at which the bar began trading, and the close represents its final price over the selected period. The high shows the HIGHEST price point of the instrument traded over the bar’s life, while the low highlights the LOWEST point of trade in the given period. Finally, we have the candlestick chart, originating from Japan. Candlestick charts offer a variation of the bar chart as it contains open, high, low and close values. Traders commonly opt for this type of chart due to its presentation. The candlestick presentation indicates the high-to-low range with a vertical line, similar to the bar chart, though candlesticks deliver a larger real body, which is the difference between the open and close, therefore making it an easier read for many technicians. Some of the popular technical tools traders use include: Horizontal support and resistance levels. These are levels applied to price charts and essentially form the floors and ceilings of the market. Another ‘must’ for many technical analysts are trendlines. Not only do these structures function to define trends, but they also serve well as ascending and descending support and resistances. Chart patterns are also popular, including formations such as triangle structures, flags, and pennants. Candlestick patterns, such as hammer and shooting star signals, as well as bullish and bearish outside reversals. And finally, traders have access to a myriad of technical indicators, like the relative strength index, or RSI, and Bollinger bands. Aaron Hill was introduced to financial trading, specifically foreign exchange, over a decade ago. Since then, Aaron caught the trading bug and has amassed substantial knowledge, obtaining CMT (Chartered Market Technician) levels 1 & 2. He has since been awarded the CFTe (Certified Financial Technician) and member of the CMT Association! For FP Markets Webinars: https://www.fpmarkets.com/past-webinars/ #FPMarkets #education #knowledge #trading #investment #academy Facebook:   / firstprudentialmarkets   Twitter:   / fp_markets   LinkedIn:   / admin   Telegram: https://t.me/fpmarketsroom