What is Technical Analysis?

 While candlesticks and support/resistance give you the raw story of price action, indicators are like tools that help confirm what’s really happening. They don’t predict the future on their own, but when combined with price action, they make trading decisions much stronger. 1. Moving Averages (MA) A moving average smooths out price data by showing the average price over a certain number of periods. Types : Simple Moving Average (SMA) → average price over time. Exponential Moving Average (EMA) → gives more weight to recent prices (faster reaction). Use in trading : Identify trend direction (price above = bullish, below = bearish). Watch for crossovers (e.g., 50 EMA crossing above 200 EMA = bullish signal). 2. Relative Strength Index (RSI) Oscillator that measures momentum. Scale: 0–100 . Above 70 = overbought (possible reversal down). Below 30 = oversold (possible reversal up). Use in trading : Spot potential reversals. Co...

 If candlesticks are the “language” of the market, then support and resistance are the map . Almost every trading strategy, from beginners to professionals, uses these levels to find entries, exits, and manage risk. What Are Support and Resistance? Support : A price level where buyers consistently enter the market, preventing price from falling further. Think of it as a floor . Resistance : A price level where sellers step in, stopping price from climbing higher. Think of it as a ceiling . When support breaks, it often becomes new resistance — and when resistance breaks, it can turn into support. Traders call this the role reversal principle . How to Identify Support and Resistance Horizontal Levels Look for areas where price has reversed multiple times in the past. Example: EUR/USD bounces near 1.0500 several times → that’s a support zone. Trendlines Connect higher lows in an uptrend → support line. Connect lower highs in a downtrend → resistance ...

When you first open a forex chart, the colored bars may look confusing — but those shapes are called candlesticks , and they are one of the most powerful tools in technical analysis. Learning how to read candlesticks is like learning the language of the market. What is a Candlestick? A candlestick represents price movement within a set period of time (e.g., 1 minute, 1 hour, 1 day). Each candlestick shows four key points: Open : Where the price started. Close : Where the price ended. High : The highest price reached. Low : The lowest price reached. Visually, candlesticks make it easier to see market psychology — whether buyers or sellers are in control. The Anatomy of a Candle Body : The thick part (between open and close). If the body is green/white → buyers pushed price higher. If the body is red/black → sellers pushed price lower. Wicks (or Shadows) : Thin lines above and below the body, showing highs and lows. Types of Candlesticks Every Tra...

  Mastering Forex Trading with Technical Analysis: A Beginner-Friendly Guide When it comes to trading forex, there are two main schools of thought: fundamental analysis and technical analysis . While fundamental analysis looks at economic reports, interest rates, and global news, technical analysis focuses purely on price action and charts . If you’ve ever wondered how traders predict price moves without reading the news, technical analysis is the answer. Let’s break it down step by step. What is Technical Analysis? At its core, technical analysis (TA) is the study of past price movements to forecast future behavior. Instead of worrying about why the price moves, TA traders focus on what the price is doing right now and use patterns, indicators, and support/resistance levels to build strategies. Key Tools in Technical Analysis Here are the essential building blocks every trader should know: Support and Resistance Support: A price level where buyers consistently ste...