Technical Analysis

Stock trading can be seen not only at the price movements, but also by volume. The volume indicates how much it has been acted on. In the currency market, there are no data indicating the volume of specific currency pairs. The foreign exchange market is simply too large and decentralized that it is possible to continuously collect information on trading volume

The theory of technical analysis is that all relevant information about a currency (or other instruments) is embedded in the price.

History tends to repeat itself, it says. In technical analysis, this is one of the core philosophy.

Technical analysis is not as objective as one might think. This is because graphs can be viewed subjectively:

A technical trader might look at the graph and think "gosh, there's no resistance here, doubling the price is very likely, I'll go ahead and buy right now".

Another technician might think "I do not like formation on this graph, time to sell out immediately!".

Technical analysis is thus a more subjective analysis form than what many like to have it.

Learn technical analysis free

Technical analysis is something you can read to themselves, and the internet is an excellent source you can use for this.

Suggestions for what to learn more about in forex and trading in general:

Support and resistance

Trends and trend channels (rising or falling market)

volume and volume balance

Candelsticks graphs

Fibonacci used in technical analysis

Moving Average (moving averages)

indicators in graphs (chart indicators)

indicator RSI (Relative Strength Index)

oscillators (oscillators)

Momentum indicators

Formations (chart patterns)

Pivot points

Elliott Wave theory

Harmonic price patterns

Technical Analysis Strategies

As you can see there is much to tune to on your own. Although you can learn everything you need to know about technical analysis free on the internet is probably your best choice however to choose a good book on technical analysis (see below).

Books on technical analysis

Books on technical analysis can also be a good investment. The best books on technical analysis is in English (good boksjapper online that we use is amazon.co.uk, amazon.com and bookdepository.co.uk).

Amazon.com is very nice if you want to read book reviews. Here you can find out which books are well received by readers. There are many good books on English financial technical analysis that deals with foreign exchange trading (forex trading).

Technical Analysis For Dummies (Barbara Rockefeller) is a decent primer on technical analysis, but are certainly not limited to forex. However, the basics on T.A. can be learned for free through our website.

The most dedicated readers will find a large selection of books on the topic. In foreign exchange trading, knowledge is money, and instead of obtaining hard-earned experience by trade in the foreign exchange market, it is to plow through some books on forex trading is a better option.

Learn technical analysis on your own

Not at all traders start their career by reading books on technical analysis. Some start with a basic understanding of simple concepts such as support and resistance, while the trader they learn little by little. Preferably with a demo account in the beginning.

Many online brokers have simple explanations of how to practice technical analysis, and these simple guidelines are in many cases good enough.

Should you eventually want to expand your technical knowledge horizon can supplement their with financial books or reading on the internet eventually, but in many cases hold the words to just trial and error and reading the easy to read instructions that many online brokers offer.

An important point for those who want to base your strategy on technical analysis:

Make a profitable strategy and follow it slavishly. Do not buy if you get ambiguous technical signals. Buy at your signals screaming "buy" and sell (or buy weaned) when the signal says "sell". Do not force through a trade if the technical signals do not meet your criteria for purchase or sale.