Learn stock market technical analysis

Stock market trading the complete technical analysis course

Technical analysis is the most accurate method of forex trading, and although it can be said that all rich traders use technical analysis,  not all traders who use technical analysis are rich. 

It is also worth noting that the basic factors influence whether prices go up or down. 

 Technical analysis is very powerful for several reasons 

 

 1) Display the numbers. All information and its impact on the market and traders is reflected in the price of the currency. 

2) It allows you to predict trends and the forex market is very "Trendy". 

 3) Some chart patterns are consistent, reliable, and reproducible. T.A helps us see them. 

 Here's how to look at a technical analysis (although you only need $ 1 each time you say "technical analysis"): Everyone knows that prices move with trends. 

Studies show that those who "behave in line with trends" are much more likely to make profitable transactions. 

 Trends often point to the general direction of the market and protect us from unprofitable entry points. I took a two-day course for over $ 2,500. 

The most important thing I learned was the need for discipline and emotional control. The content was so simple that I could cover it in the next three or four articles. 

Learning about "trading tools", technical indicators, and how to use them can help you find market trends, but you still need to anticipate ups and downs and trade with emotional controls.

Follow the trends and follow the prices. 

 Find out the price of a currency pair. If the EUR / USD moves to 1.06, then 1.04, and then  1.01, the market is on a downtrend. Just worry about what the market is doing, not what the market is doing. 

When you listen to the market, the indicators see what they are saying to you. moving average. 

 Shows prices at specific times and intervals. It is called a moving average because it shows the latest average price for the selected time period. 

 They are lagging behind the market, so it takes a 5 or 10-day moving average to find a trend reversal. 

By combining the short-term and long-term averages, you can identify the buy signal when the short-term average crosses the center of the long-term moving average. Or a sell signal when you move down. 

For example, you can compare a 5-day moving average to a 20-day moving average, or a 40-day moving average to a 200-day moving average. 

 There are simple moving averages, linear weighted averages that give more weight to the current price, or exponentially weighted averages. 

The latter is preferred to take into account all prices over a period of time but emphasizes the importance of recent price changes. 

 MACD 

   MACD is based on a moving average and uses the 9-day exponential moving average as a trigger line to represent the difference between the 26-day exponential moving average and the 12-day exponential moving average. 

If the MACD turns positive while the market continues to decline, it could be a strong buy signal. And vice versa. 

 Bollinger Bands (looks like a rubber band). 

 Prices tend to fluctuate between the upper and lower bands. They grow and shrink depending on the volatility of the market at the time.

 If the moving average is above the Bollinger Bands, there is a sell signal, and if there is a buy signal, the opposite is true. 

Some traders use it in combination with  RSI, MACD, CCI, and exchange rates. 

 Fibonacci retracement 

  Describes the natural cycle that identifies changes in market trends when used for technical analysis. 

After rising, prices often duplicate many of the original moves, sometimes all. Support and resistance levels are usually close to the Fibonacci retracement level. 

The Relative Strength Index measures market activity to determine if a market is overbought or oversold. 

This indicator is the main indicator and shows what the market is trying to do (great!). 

A high RSI value indicates an overbought situation (that is, a downward movement is expected), and a low RSI value indicates an oversold situation. 

 Successful traders typically use three or four signals to get a more accurate signal before starting a trade. 

 Always keep in mind, "Keep away when in doubt." The technical analysis does not take into account political news, the country's economic profile, or basic supply and demand. 

 Technical analysis helps determine the amount of risk you are taking when trading. When and how to get in and out of the market to make a profit and minimize losses.