#تعلم My trading friend, you are not here to lose.
In the coming days, I will explain a simple method that will enable you to know the future of the new currency and analyze the numbers.
What is technical analysis?
Technical analysis is a methodology used to study the price movements of assets (such as stocks, currencies, cryptocurrencies, or commodities) using charts and historical data. The primary goal of technical analysis is to predict future price movements based on past market patterns and performance.
Technical Analysis Basics:
1. The price reflects everything:
It is believed that all factors affecting the asset (news, economy, supply and demand) are reflected in the price.
2. Prices move in trends:
Technical analysis is based on the concept of trends, where prices move in upward, downward or sideways directions.
3. History repeats itself:
It is believed that past patterns and movements can be repeated.
Technical analysis tools:
1. Charts:
Candlestick Charts: Show prices (open, close, high and low) for a specific period of time.
Line Charts: Show price action based on the close only.
Bar Charts: Display details similar to Japanese candlesticks.
2. Technical indicators:
Trend indicators: such as moving averages.
Momentum indicators: such as the Relative Strength Index (RSI) and MACD.
Volume indicators: such as the trading volume indicator.
Support and resistance levels: Used to identify areas of price reversal or trend continuation.
3. Patterns:
Price patterns: such as head and shoulders, triangles, double tops and bottoms.
Japanese candlesticks: such as hammer, bullish/bearish engulfing.
How to use technical analysis:
1. Determine the direction:
Determine whether the market is moving up, down, or sideways.
2. Determine entry and exit points:
Use support and resistance levels and indicators like RSI or MACD.
3. Use of time analysis:
Choose the appropriate time frame (daily, weekly, monthly) based on your strategy.
4. Risk Management:
Use stop loss orders and determine the appropriate trade size.
Advantages of technical analysis:
Applies to all markets (stocks, currencies, cryptocurrencies).
Based on actual data (price, volume).
Helps identify market trend and entry and exit points.
Disadvantages of technical analysis:
It does not take into account fundamental factors (news, economic data).
It can be subject to interpretation (different interpretations of the same patterns).
Best practices:
Combine technical and fundamental analysis to gain a comprehensive understanding of the market.
Practice using technical analysis tools with a demo account.
Avoid relying entirely on one indicator or one tool.
