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Technical Analysis Chart: Predicting the Market
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You may be familiar with the stock market, the Forex market, the Futures market and other kinds of financial markets. You as an investor in these markets would definitely want to know first hand about the future of the financial security you are holding.
This is why there are technical analysis charts to guide you on your trades. You may have seen these charts on TV or in your computer, with all those lines zigzagging, bar graphs and candlestick graphs. You probably know that these charts are the actual movement of a particular financial instrument.
This is where investors try to analyze the price movement of a particular financial security.
Technical analysis is what investors do to predict the outcome of the market. They do this in order to help them decide what to do about a particular financial security. With this kind of tool, they will know what and when to buy or sell.
By far, the easiest to read are the line charts. This will give you a broad overview of the price movement of a particular stock. It will show you when prices rise and when it drops. Technical analysis is where you study the movement of prices and try to find a pattern in it. Once you find a pattern, you will then predict where it will go next, even if the price movement hasn’t happened yet.
However, line charts aren’t as much detailed as the bar chart and candlestick chart. In a bar chart, it will display the price spread during a specific time interval. It is easy to tell the lower lows from the higher highs because the left tab will display the opening price while the right tab will display the closing price.
Printed bar charts can be difficult to read, but there are programs that you can use where you can access real time bar charts and zoom in to know more about the different changes that occurs in the market. The computer version will give you a more detailed version than the printed bar chart version.
Another kind of chart is called the candlestick chart. This form of charting originated in Japan where it was used for analyzing candlestick contracts. This form of chart is very useful for Forex trading. With this chart, you can easily analyze movements of Forex prices. This type of chart is very much similar to bar charts. Both of these charts show the highs, the lows and the opening and closing price for the indicated time.
In order to read the price movement easily, the candlestick price is color coded. However, it will also color code the rising price as green and the falling price as red.
This will greatly aid your analysis and can be a great tool in predicting the market outcome.
In order to fully support your trading prediction, you should include other forms of technical indicators. Charts can be useful in their own but it is often hard to predict the price. You have to add other technical indicators to further inform you and accurately predict the outcome of the price.
Examples of technical indicators that can aid you in your chart reading are called strength indicators, trend indicators, cycle indicators and volatility indicators.
These indicators can greatly help in giving you an accurate prediction of the market outcome. Therefore, this will increase your chances of profiting and decreasing the risks of losing money.
Analysis Forex Technical News
Forex - EUR/JPY Technical Analysis (Euro / Yen)
The pair continues to move on the lower band of its bearish slant (purple line). The pair is still testing the support at 102. All indicators are bearish. We continue to advise short positions as far as 103.67 is resistance. The breakout of 102 will give a new sell signal and open the way towards 101. In case of return above 103.67, we will wait the breakout of 104.45 to advise long positions.
Read more...Forex - EUR/USD Technical Analysis (Euro / US Dollar)
The pair EUR/USD has faked last friday the breakout of the support at 1.27 and is currently testin a pullback on 1.28. The pair is still moving below the lower band of its bearish channel (purple line). A paralell of this bearish channel is acting as resistance (pink line). All indicators are still bearish. We continue to advise short positions as far as 1.28 is resistance. A return below 1.
Read more...Forex - EUR/GBP Technical Analysis (Euro / British Pound)
The pair EUR/GBP has validated on friday a return above 0.8050. The pair is still moving into a bearish channel (purple paralell lines). We are neutral between 0.8050 and 0.81. We advise to wait an exit of this range to take position: - Long above 0.81. The breakout of 0.8150 will give a new buy signal. - Short below 0.8050. The breakout of 0.80 will give a new sell signal.
Read more...MahiFX Launches New Forex Technical Analysis Indicators and Charting Components
MahiFX introduces new graphical indicators, overlays and trend lines along with charting components to enable traders to zoom, draw and trade directly on interactive chartsLondon (PRWEB UK) 15 May 2012 MahiFX, the proprietary-built retail foreign exchange (Forex/FX) trading platform, has today released a new suite of charting components and market-timing technical analysis features and ...
Read more...Forex - AUD/USD Technical Analysis (Australian Dollar / US Dollar)
The pair AUD/USD found support on 0.98 last friday. The pair continues to move on the lower band of its bearish channel (purple lines). All indicators are bearish. We continue to advise short positions as far as 0.9950 is resistance. The breakout of 0.98 will give a new sell signal and open the way towards 0.97. In case of return above 0.9950, we will wait the breakout of 1.
Read more...Forex - XAU/USD (Gold) Technical Analysis
The gold has continued its bearish movement and the breakout of 1550 points gave us a new sell signal. Currently, the gold is moving towards the next support at 1520 points. The pair continues below the lower band of its medium term bearish channel (purple lines). All indicators are bearish. We maintain to trade only short positions as far as 1577 points is resistance.
Read more...Forex - GBP/JPY Technical Analysis (British Pound / Yen)
The pair GBP/JPY finaly took up its bearish movement yesterday and is currently testing the support at 127.70. The pair is moving along the upper band of its former falling wedge (purple lines). All indicators are bearish. We continue to advise short positions as far as 128.86 is resistance. The breakout of 127.70 will give a new sell signal and open the way towards 126.70.
Read more...Forex - USD/JPY Technical Analysis (US Dollar / Yen)
The pair USD/JPY has tested yesterday the resistance at 80.41. All indicators are bullish. The pair is still moving above the upper band of its former bearish channel. We are neutral on the pair between 80.09 and 80.41. We advise to wait an exit of this range to take position: - Long above 80.41. The breakout of 80.76 will give a new buy signal - Short below 80.09. The breakout of 79.
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