Technical analysis is a critical part of the forex market. The forex market comes along with multiple volatilities, and with technical analysis, you can be rest assured that you can track and counter these volatilities seamlessly. FCF Markets hosts a wide collection of technical analysis tools – which makes the platform standout. As per the FCF Markets review, the platform allows traders to make the trade directly from the candlestick chart window – thus enabling a higher efficiency as a trader.
This article mainly focuses into the key aspects of technical analysis and how it improves the efficiency in forex trading. Moreover, we shall also focus into the technical analysis tools that are available in this brokerage platform.
Why is technical analysis important for forex trading?
It is important to understand that the Forex market is highly volatile in nature. With such a high volatility, what is crucial is to be able to predict the market movements – as the global events take place. Technical analysis often involves the use of Candlestick charts – that are a tracker for the increase or decrease of price within the forex market.
Here are the five reasons why you must go ahead and learn further about technical analysis and its application within the forex market.
- Trend analysis: Trend analysis becomes very crucial when you’re taking a leap into the forex market. If the trend is identified, then positions can be made along the direction. Moreover, following the trend always helps in making higher profits. With better profits, you are at a higher chance of improving your portfolio – thus technical analysis becomes imperative, when it comes to the forex markets.
- Price action: Price action is the tool which helps you to enhance your trading efforts. Candlestick often comes along with multiple technical indicators – but none of them offer an accuracy of over 90% – yet price action deals solely with the price movements, as represented by the candles. With the help of price action, you stand a better chance of improving the portfolio performance.
- Stop-loss and target analysis: With the help of technical analysis, the market analysis takes a new shape – as the tools like Fibonacci fan help in analyzing the target for your position. Moreover, with the help of the Fibonacci levels, you can also improve the risk management, with the help of stop-loss identification, thus enhancing a higher return on investment, and cutting your losses.
- Volume growth: Keeping a track of the volume helps us in predicting when the trend is close to a reversal. By keeping a track of the growth in volume, you will be able to decipher when the bulls/bears are getting weaker, thus leading to a market reversal.
Technical analysis in FCF Markets
FCF Markets come along with some of the best technical analysis tools – namely candlestick charts, technical indicators, economic calendar and many more. With a wide collection of technical analysis tools, traders are at an advantage, thus enabling them to improve their portfolio by a wider margin too. So, if you are looking for an advanced technical trading platform – FCF Markets should be your first go.
