moonchild
VIP Contributor
In Forex Trading, trades are taken based on technical, fundamental or sentimental analysis, these are the core reason for taking a trade, in this article you will learn about the most important tools to use in analyzing the chart in a technical way.
Moving Averages: Moving averages are used to identify trends in a chart, it is very important in technical analysis because it shows you exactly the way the trend is heading before making a trading decision.
Relative Strength Index: relative strength index is used to measure the strength of a trend, often times there are fake breakouts, sometimes you might open your chart during a retracement and you'll make a decision on a contrary trend, this tool help you to silent the noise and show you exactly where the trend is headed.
Trend Lines: Trend lines are those lines that are used to define the edges of retracement so that you will be able to take action when price reaches the trend line.
Channels: Channels are like trend lines that are used during a ranging market, when price is going up and down in a swing motion, a channel helps you to identify endpoints in each direction of the market.
Moving Averages: Moving averages are used to identify trends in a chart, it is very important in technical analysis because it shows you exactly the way the trend is heading before making a trading decision.
Relative Strength Index: relative strength index is used to measure the strength of a trend, often times there are fake breakouts, sometimes you might open your chart during a retracement and you'll make a decision on a contrary trend, this tool help you to silent the noise and show you exactly where the trend is headed.
Trend Lines: Trend lines are those lines that are used to define the edges of retracement so that you will be able to take action when price reaches the trend line.
Channels: Channels are like trend lines that are used during a ranging market, when price is going up and down in a swing motion, a channel helps you to identify endpoints in each direction of the market.