How can you use technical analysis?
Why is technical analysis important?
Technical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts, market statistics.
Technical analysis did not pass by the broker BDSwiss. Most recently, BDSwiss Holding PLC Executive Director Marcos Solomu noted: “The introduction of MetaTrader 5 not only opens up great opportunities for users, expanding the range of financial instruments with which traders can profitably trade in the forex market. During the development, the main emphasis was placed on speed, technical analysis and reliability in the fifth generation platform, which opens up a unique trading environment for users of the BDSwiss broker. MetaTrader 5 allows you to more closely and better monitor your transactions and make more informed decisions using advanced analytical tools. ”
To determine the future direction of the asset price, analysts have developed special indicators. The indicator is a graphical model that signals a change in price direction. This is true both for the BDSwiss broker and for Binary (Deriv).
Weekly stock chart.
A weekly chart is a series of price action data for a traded security, where each candle, bar or point on the line represents a summary of prices for one week of trading. Candlestick chart and bar chart are the most common types of charts used by traders and investors.
The best free weekly charts for NSE stock sites:
· TradingView – the best trading community
· TD Ameritrade – most configuration options.
· StockCharts.com – financial analysis of the forex market
· Yahoo Finance – financial tech. analysis
· Google Finance – Quick and easy weekly charts nse stocks.
· FINVIZ – Detailed Tech. analysis.
Interactive price charts provide the ability to visualize indicators – just click on the Indicators button and select the desired indicator from the list that appears. A trader can see how it works in action on a live price chart.
The basis of any indicator is a trend and a number of other, subtler algorithms, which allows you to fairly accurately predict the future price trend in the short term.
The most commonly used indicators in technical analysis include:
1. Moving Averages – Moving Averages;
2. Williams Volumes – William’s Volumes;
3. Alligator – Alligator;
4. Stochastic – Stochastic;
5. MACD – Moving Average Convergence / Divergence;
6. Bollinger Lines
Technical analysis is the study of price patterns for a specific asset.
There are many ways to identify patterns in the market, but most technical experts pay attention to the following points:
1. Technical stock analysis using patterns. Using this method, technical analysis specialists focus on images: support and resistance levels, trend lines and Fibonacci levels to identify well-known classic graphical models, such as symmetrical triangular vertices and consolidation models. These models give a clear idea of the strengths and weaknesses of buyers and sellers in the market.
2. Technical analysis using candlestick patterns. Many traders use, using technical analysis, candles or candlestick charts that display opening, closing, maximum and minimum prices for a certain period of time to determine patterns of behavior of buyers and sellers over a short period of time.
3. Nse analysis using indicators. In technical analysis, indicators are used to determine market conditions. For example, many technical indicators give signals about when the market is overbought or oversold.
Other indicators give tips on the rise and fall of the impulse. Technical indicators of the stock market are also successfully applied.
We recommend free stock market technical analysis books free download for better trading.