Technical analysis in forex is the study of charts and technical indicators to determine the past and future price movement of a currency pair, which is unlike basic analysis, because technical analysis is based on the use of charts and some mathematical techniques that help in studying all aspects of the price movement of a currency pair, and with the progress With the growth of the Internet, technical indicators that were only available to professional traders and brokers in forex, are now available and available to any trader.
What do the graphs mean?
Charts and charts will help provide more information about the price movement of a currency pair in forex, and many traders say that charts tell the story of a currency pair, with more than fifty types of technical indicators, and in addition to that the trader can get many From information about how the currency pair moves, this is historical information from which the trader can infer the future movement of the currency pair.
support and resistance
The majority of traders in the forex market tend to search for support and resistance lines, and the support line represents the lowest price that a currency pair can reach, while the resistance line represents the highest price that a currency pair can reach, depending on the strength of these lines, the prices They tend to trade between support and resistance levels. Support and resistance lines are a basic type of trend line that can be easily identified with a moving average or with difficulty through complex technical techniques.
Many traders see how important it is to determine the trend line for a currency pair, as the trend line shows us how the price of a currency pair can move up, down, or sideways, so finding a trend is one of the most important things that are very useful in determining the future price movement, The famous saying that “the trend is your friend” is absolutely true, and many traders rely on having a trend
To anticipate price movements.
The technical indicator studies a specific aspect of the currency pair, so the technical indicators are very similar to the economic reports in that they are a healthy and dynamic study of the currency pair, while the study of the economic reports gives an indication about the growth and health of the economy, and traders can use many different types of indicators or can focus on a few of them, and traders with more experience will focus on using some types of technical indicators in order to get the necessary information to trade.
Why do we use technical analysis?
Technical analysis provides useful information about the best entry and exit points for the market on the chart, in addition, a trader can see the rising momentum and exploit it.
Is technical analysis difficult?
Technical Analysis It is not difficult, but it requires studying some different types of charts such as hourly or daily charts, knowing the technical indicators and how to use them. Computers and the Internet have made this process much easier. Technical data is free of charge or at a nominal cost, and remember that you should focus on using a few indicators that will provide you with the necessary information.