Forex Technical Analysis Strategies

A trend is nothing more than a tendency, a direction of market movement, i.e. one of the most essential concepts in technical analysis. All the technical analysis tools that an analyst uses have a single purpose: help identify the market trend. The meaning of the Forex trend is not so much different from its general meaning - it is nothing more than the direction in which the market moves. But more precisely, foreign exchange market does not move in a straight line, its moves are characterized by a series of zigzags which resemble successive waves with clear peaks and troughs or highs and lows, as they are often called.

Among the fundamental and most commonly used technical analysis tools, support and resistance (SR) levels have a special place. Moreover, strategies based on them are used not only by beginners, but also by quite experienced traders, who have many other tools at their disposal, as well as extensive trading experience. So why have these simple lines become so widely used by investors? Let's think about this together.

Range trading strategy, which is also called channel trading, is generally associated with the lack of market direction and it is used during the absence of a trend. Range trading identifies currency price movement in channels and the first task of this strategy is to find the range. This process can be carried out by connecting a series of highs and lows with a horizontal trendline. In other words, the trader should find the major support and resistance levels with the area in between known as “trading range”.

Technical indicators are calculations which are based on the price and volume of a security. They are used both to confirm the trend and the quality of chart patterns, and to help traders determine the buy and sell signals.The indicators can be applied separately to form buy and sell signals, as well as can be used together, in conjunction with chart patterns and price movement.

차트는 FX 기술 분석을 위해 특정 기간 동안의 가격 움직임을 그래픽으로 표현한 것으로 한 달 또는 1년 동안의 환율 변동을 한눈에 볼 수 있습니다. 거래자가 검색하고자 하는 정보와 알고 있는 지식에 따라 막대 차트, 선형 차트, 캔들 스틱 차트, 포인트 차트, 그림 차트 등 특정 유형의 차트를 사용합니다.

Volume shows the number of securities that are traded over a particular time. Higher volume indicates higher degree of intensity or pressure.Being one of the most important factors in trade it is always analyzed and estimated by chartists. In order to determine the upward or downward movement of the volume, they look at the trading volume gistograms usually presented at the bottom of the chart. Any price movement is of more significance if accompanied by a relatively high volume than if accompanied by a weak volume.