Technische analyse

Technical analysis, when coupled with the Trade24 platform, enables investors and traders to:

  • Exploit price action in the forex market for gains in a 24-hour market setting
  • Seamlessly negotiate currency markets that feature deep liquidity and minimum inconsistency
  • Decide when and how to trade and invest in trends and/or ranges to best accumulate profits

The Forex market offers a bevy of opportunities for investors seeking significant gains with minimal risk. One of the best approaches for FOREX traders and investors to consider is the application of technical analysis to better capitalize on trends in the currency marketplace.

Price Action

A fundamental principle of technical analysis pivots on the notion that historical price action often predicts future price movements. Given that foreign currencies are traded in a 24-hour market, traders and investors can harvest and analyze a tremendous amount of data via charts, trends and leading indicators to more accurately predict future price action. The better investors become at interpreting affiliated data points related to price action, the more effective they will be at leveraging opportunities in the Forex markets to experience robust gains. Seasonality, central banking policies, and trade deficits, among other factors, all have the capacity to influence price action and subsequent profits.

Consistency

One of the chief benefits of the Forex market is its liquidity and consistency. Large institutional investors, hedge funds, and significant independent traders all participate in the currency markets. This nurtures a deep and even trading landscape that makes it easy to apply technical analysis to make outsized profits. For smaller investors, this provides them with an advantage in that they can leverage the depth of the market, yet remain nimble enough to capitalize on opportunities in the Forex market that larger institutional investors may lack the flexibility and speed to leverage. Moreover, both large and emerging investors in the currency markets find that the consistency and depth enable them to employ technical analysis with greater potential for consistent returns. The positions they take in the market are less susceptible to unforeseen events or conditions that make other investments potentially more risky. In other words, traders trust technical analysis more within the Forex markets because it provides them security in knowing that the factors that shape price action, such as political or economic conditions, have been considered already when setting the market price for a currency pair.

Noting Trends

Technical traders work tirelessly in the Forex markets to predict whether a currency pair will move significantly up, down, or sideways, or if it will remain in a tight trading range. Technical analysis helps them to achieve this by creating trend lines that link historical levels that have enabled or stopped a pair trade from moving in a given direction. Once these support or resistance levels have been determined, investors will decide whether a given trend will remain. Like with price action approaches, in developing these trend lines, traders will employ long-term or short-term charts to hone in on the trends they seek to leverage.

Macro traders, for example, may examine historical price action over 10 years regarding a currency pair to better understand where it has been and where it might be going. In contrast, a day trader in the currency markets seeking fast profits will focus their energy on analyzing currency pair movements in more restricted time intervals limited to a single day, hour, or even seconds. In both instances, investors in the Forex markets will consider technical analysis, price action, and other factors, such as the overall strength of country's currency, to determine where to risk their capital for profit.

 

Whether you are an emerging independent currency market player or represent an established institutional investor, Trade24 features the versatility that will enable investors to employ technical analysis seamlessly in developing their trading strategies and tactics. The platform facilitates the ability of investors to execute trades any time of day within a formal office setting or from your home. Users of the Trade 24 platform can also download an app to their mobile phone, which provides them access to the Forex markets from anywhere in the world. Visit the Trade24 site to discover the full potential of the application and how you can leverage it for big profits.