Technical Analysis of Financial Markets

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Technical Analysis of Financial Markets

Twenty First session of Forex Training

Welcome back to Forex professional training in financial markets.

In this session we will talk about Technical Analysis of financial markets, classic Technical Analysis and modern Technical Analysis.

This is basically a way to predict and estimate the market price behavior.

It can be achieved through studying market price history. Price changes and fluctuations are examined alongside of consideration on transaction volume.

Technical Analysis is executed on every asset that has chart and price shift over time especially in Forex, Stock, real estate market and precious metals market especially Gold.

Application

The most attractive analysis for speculators is Technical analysis as it uses mathematical equations and relations to indicate trends and price returns plus long and short directions.

Technical Analysis of Financial Markets - Fundamental Analysis of News - Classic and Modern Financial Analyses

Technical Analysis

Technical Analysis is categorized into two groups; Classical and Modern analysis.

Classical technical analysis has been established by Charles Dow who has published his theory about technical analysis in the Wall Street Journal newspaper in 1900 on the basis of price change and fluctuation.

He was inspired by natural fundamentals, previous experience and market history.

Modern technical analysis is established on the basis of price movement and has 3 main principles;

  1. Technical analysis does not specify market price while it intends to predict the future price and trend of market.
  2. Focus of traders are on market price which is produced from technical analysis and market expectations.
  3. Technical analysis is only based on an earlier market prices.

Modern technical analysis evaluates and studies on the previous market prices to forecast future market movement and price, thus events are expected to follow the prediction derived from technical analysis.

Technical Analysis of Financial Markets - Future Market Price Based on Latest Market Trends

Most of the people assume that Technical analysis collaborates with Fundamental analysis whereas Fundamental analysis is derived from Technical analysis.

The following content will be discussed later;

  1. Trend, support, resistance, trend break through and price channel.
  2. Candle stick
  3. Fibonacci in financial market and Fibonacci Retracement
  4. Indicators and oscillators
  5. Divergence, convergence, hidden divergence
  6. Average price, its support and resistance role on trends
  7. Model types – Continuous or reversal patterns
  8. Price action – the best way reversal spots

Technical Analysis of Financial Markets - Fibonacci, Indicator and Oscillator - Harmonic and Andrew's Pitchfork

  1. Harmonic model
  2. The Elliott waves method
  3. Andrews pitchfork method
  4. Risk and capital management
  5. Trade strategies – how to plan a trading strategy - multiple successful strategies
  6. Other educational material on technical analysis

That concludes this session, until next time and another session take care.

Linkages & Notices

Kindly visit 21st session: Introduction to Technical Analysis on Financial Video Tutorial section to watch video format of Technical Analysis of Financial Markets.

You can find Introduction to Technical Analysis video on PForex YouTube Channel.

PForex Educational materials in text and video formats are developed by PForex Department of Education to enhance and improve investors’ knowledge and trading skills. Due to high risks and volatile fluctuations in financial markets, traders and investors must develop their trading skills and knowledge. It is strongly recommended to apply Risk and Capital Management when trading in financial market

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