What is Technical Analysis
Technical analysis is the analysis used to forecast the future price movement of various Financial assets such are Forex Currencies, Stocks and Indices. Technical Analysts are using tools such are moving averages, indicators and charts to identify price patterns. Technical analysis is actually measuring the market’s psychology and it is much more valid in short-term periods.
What is a Chartist
A Chartist is the trader who uses charts and other technical analysis tools to forecast the future price movement of a currency pair.
What is a Tick
Tick is the minimum change of time in the Forex market.
What is a Tick Chart
Tick chart is a price chart made by ticks values.
What are Time Cycles
Time cycles are used to describe the repetition of financial price movements at particular time frames.
What is a Bar Chart
A bar chart is a chart where prices are indicated in forms of bars or lines.
What is a Candlestick chart
Candlestick chart is a Japanese origin chart which is widely used in the Forex market. A candlestick chart is a combination of a line-chart and a bar-chart.
What is a Breakout
Breakout in technical analysis means the breakdown of the trend below its support / or above its resistance level.
What is a Channel
A trading channel indicates the limits of a future price movement.
What is an Uptrend
An uptrend is a price trend that is bullish.
What is Downtrend
A downtrend expresses a downward trend of a currency pair.
What is Volatility
It is the speed at which the price of a financial security fluctuates.
What is Volume
Volume measures the level of trading activity.
What is a Resistance Level
Resistance level in technical analysis is the price upper zone where a bullish trend is possible to reverse. The increase of volume activity is a common phenomenon in such price zones.
What is a Retracement
A retracement is a short-term correction of a price trend, after which the master trend is continued.
What is RSI (Relative Strength Index)
RSI is a widely used technical indicator which indicates oversold and overbought levels.
What is Support Level
Some basic definitions about trading the Financial Markets..
What is Trading?
Trading in general means the act of buying or selling financials assets (securities, commodities or other) in order to make a profit in a short time period.
What is the Difference between Trading and Investing?
Actually Trading is a short-term version of investing. Two things mainly distinguish these two practices:
(1) The Time Horizon
Investing has a time horizon from 1 year to many years. Trading has a trading horizon of intraday to a couple of months.
(2) Trading Sides
When investing you may profit only from the appreciation of the price of a financial asset, while in trading you can profit from both sides (appreciation and depreciation of the price).
Today traders may choose among tens of financial markets and from a variety of thousands of different assets. The most common market for trading is Forex (Foreign Exchange) but Stocks, Indices and Commodities are very popular too.
What is a Trading Account?
A trading account is a personalized account opened in a brokerage company that enables an individual to buy and to sell securities from around the world. Trading has become computerized during the past couple of decades so a trading account nowadays is most commonly opened online.
What is Forex Trading?
Forex trading is the act of buying or selling Forex Currencies using a Forex Broker. You can choose from a wide variety of currency assets categorized as majors, minors and exotic currencies. Trading Forex nowadays is done online. There are tens or even hundred of online Forex brokers to choose among.
After finding a Forex Broker and depositing funds you will be able to execute any order. Trading orders are placed in a few clicks while you can take advantage of high capital leverage (up to 1,000%). Your cost includes the trading spread and / or trading commission paid.
What is Trading?