- Technical analysis involves study of current price movement & comparing it with the past price movement to decide on the future price movement, with the help of charts.
- The decision could be buy, sell, hedge or stay out of market for the moment.
- Basic idea is study and analysis of past price movement or price action and finding the price behavior which may get reflected back in future in order to make profitable trades.
- As everything happening in market is being reflected in price action, one can identify support level, resistance level and numerous different patterns of any currency pair. But keep in mind there is nothing as perfect. these levels or patterns can break too.
- In order to make your analysis more perfect there are thousands of technical indicators available. These indicators are based on price direction, volume, trends, volatility, momentum so forth and so on.
- Once you identified your indicators to use, you just have to place them on chart and analyse the price movement to make the best decision. Now, here comes the Big question of which indicators to choose & how many? Don't worry, I'm here to guide you on that. You can have a look on full list of MT4 indicators available for download along with full explanation here.
Technical Analysis
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