The basis of intraday trading is technicalanalysis. For beginning traders, the most important thing is to start with its development. Thanks to technical analysis, you can learn to understand charts and predict price changes.
Technical analysis is an approach based onworking with various graphs, oscillators and information related to price history. Without it, adequate trading, forecasting the value of currencies and understanding the market are impossible.
Includes many methods, for exampletechnical analysis figures, ways to display information (candlesticks, bars, lines, areas, Heiken Ashi indicator, etc.), as well as hundreds of popular indicators, drawing tools over charts and much more. Its essence is that the trader finds certain patterns in the available information, and on the basis of this, a forecast is born.
It can work almost everywhere:currency, term and stock markets, resources, goods - in general, any data plotted on a chart. Why is it needed? To predict the future behavior of the price. For example, if you take the euro / dollar currency pair and data on it for a certain period, then on their basis you can build a forecast of price behavior in the future. There is no fundamental difference with which trading instruments you will work: with futures, options or even with Forex. Technical analysis is your assistant.
Technical analysis for beginners is the head.pain. It can and should be studied endlessly during the whole work related to trading. If you choose this path, you need to improve constantly.
Work is quite hard and requires diligence.Endless graphics, numbers, various additional tools, programs, robots and much more - all this is technical analysis. A course for novice traders should contain at least the basics, namely, the Japanese candlesticks, trend lines, support and resistance, the simplest indicators, the concept of a timeframe, and some other things.
In fact, there are not so many of them.The most popular option - Japanese candles. By the way, they appeared before trading, stock exchanges and the Internet in general were born. The second option is bars. These are the stripes with dashes. They are somewhat similar to candles, but have a different appearance, although they demonstrate the opening and closing prices in the same way. There is a simpler option that beginners love so much, but it is practically useless. This is the usual line. It really does not see anything, to track any figures of technical analysis is almost impossible, the maximum you can understand the current price direction. However, any options have the right to life. There are other more exotic types of charts, but they are unpopular.
Many will be deterred by such a complex foreigntitle. However, without this it is impossible to understand. In the terminal of your broker or on a third-party resource, each asset has its own periods of displaying information. Namely:
Depending on your service provider, theseperiods may be slightly different, but the most common and used to date are given above. It is advisable to read about the relationship of these periods and understand that the younger form older. So without this in any way.
These are price directions.The price can have only two directions, namely the trend up and down. However, there are still lateral movements. This is a kind of uncertainty when the price fluctuates and cannot choose a direction. In addition, trends have kickbacks. This is when the price goes up, for example, but it cannot do it continuously, and there is a slight decrease. This is normal, as is market noise. The golden rule of trading is to trade only in accordance with the direction of the price.
This is more difficult.Technical analysis for beginners is not an easy thing. And when it comes to various graphical indicators, it becomes even more difficult. The following are the most popular indicators:
Each of them has its own tasks, thereforeit is recommended to study each separately. Try searching for information about these indicators separately or use the help that brokers often offer in their platforms. These tools are often used in trading strategies, but there are countless of them in various combinations and variations.
If you decide to seriously engage in currencytrade, then read the literature and forums, learn various candlestick patterns and other information. As you already understood, the most important thing is technical analysis for beginners. A book about one thing will not give a newcomer a general picture, so it’s best to look for information on forums and in various schools.
