📊 What is Technical Analysis
Technical analysis is used to forecast the future price movement of various financial assets such as Forex currencies, stocks, and indices. Technical analysts use tools such as moving averages, indicators, and charts to identify price patterns. Technical analysis measures market psychology and is more valid for short-term periods.
Other Terms Related to Technical Analysis
- What is a Chartist
A chartist is a trader who uses charts and other technical analysis tools to forecast the future price movement of a currency pair.
- What is a Tick
A tick is the minimum time-based change in the Forex market.
- What is a Tick Chart
A tick chart is a price chart formed by tick values.
- What are Time Cycles
Time cycles describe the repetition of financial price movements within specific time frames.
- What is a Bar Chart
A bar chart is a chart where prices are represented as bars or lines.
- What is a Candlestick Chart
A candlestick chart is a chart of Japanese origin that is widely used in the Forex market. It combines features of both line charts and bar charts.
- What is a Breakout
In technical analysis, a breakout refers to the movement of price beyond its support or resistance level.
- What is a Price Channel
A trading channel indicates the potential range of future price movement.
- What is an Uptrend
An uptrend is a bullish price trend.
- What is a Downtrend
A downtrend is a bearish movement of a currency pair.
- What is Volatility
Volatility is the rate at which the price of a financial asset fluctuates.
- What is Volume
Volume measures the level of trading activity.
- What is a Resistance Level
A resistance level in technical analysis is the upper price zone where a bullish trend may reverse. Increased trading volume is often observed in such areas.
- What is a Retracement
A retracement is a short-term price correction before the main trend resumes.
- What is RSI (Relative Strength Index) » More about RSI
RSI is a widely used technical indicator that shows overbought and oversold levels.
- What is Support Level
A support level in technical analysis is the price zone below the current level where a bearish trend may reverse. Increased trading volume is often observed in such areas.
- What is the Elliott Wave Principle
The Elliott Wave Principle is a basic chart pattern consisting of five upward waves followed by three downward waves.
- What is Fibonacci Retracement » More at TradingFibonacci.com
Fibonacci retracement is a technical analysis tool based on key levels calculated as 23.6%, 32.8%, 50%, and 61.8% of a price trend range.
- What is a Gap
A gap refers to the difference between the closing price of one period and the opening price of the next. In the Forex market, gaps typically occur after weekends.
- What is Momentum
Momentum is the rate of change in the value of a currency.
- What is an Open Position
An open position refers to an active trade in the Forex market.
- What are Oscillators
Oscillators are technical analysis tools used to predict future price movements.
- What is a Pivot Point » More
A pivot point is a key level used to identify support and resistance.
- What is a Bear Market or Bearish Market
A bear or bearish market is a financial market expected to move downward.
- What is a Bull Market
A bull or bullish market is a market expected to move upward.
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◘ What is Technical Analysis
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