Technical analysis is a method of predicting price movements and future market trends by studying charts of past market action. Technical analysis is concerned with what has actually happened in the market, rather than what should happen and takes into account the price of instruments and the volume of trading, and creates charts from that data to use as the primary tool. One major advantage of technical analysis is that experienced analysts can follow many markets and market instruments simultaneously. Regardless of the method or strategy that you follow to trade, only technical analysis will give you entry points, exit points and help with market swings to set stop losses. Technical analysis can be simple or as complex as you like. There are many easy to understand technical indicators that can be combined into a great trading system.
There are five categories in CFD technical analysis theory:
1. Indicators (oscillators, e.g.: Relative Strength Index (RSI)
2. Number theory (Fibonacci numbers, Gann numbers)
3. Waves (Elliott wave theory)
4. Gaps (high-low, open-closing)
5. Trends (following moving average).
In this class, we will learn which indicators fit each category and how to combine them properly to make solid trading decisions
John RomanJohn is an active trader and educator at Investors Trading Academy with an MBA in Finance from New York University. He began trading in 1995 focusing mainly on commodities and options, then transformed into forex investment. His current specialization covers all aspects of forex trading utilizing fundamental and technical analysis, namely chart pattern analysis. Mr. Roman has conducted training seminars on all over the world from novice to innovative strategies. He provides a solid, collaborative and extremely encouraging training atmosphere to assist Forex traders in locating and trading momentum moves, using confirmed patterns and methods.