There are some building blocks that every trader needs to understand. These are your foundations for success. These concepts are important to understand and interpret price action. These key elements help you build a roadmap so that you don't get lost and just like a roadmap, the more details you add the more successful your trip will be. These concepts have been divided into three classes ranging from charts to trendlines and support and resistance.
To achieve success in today's forex, CFD and trading arenas, one must be proficient in reading and more importantly understanding chart patterns and basic technical indicators. In this class, we will learn just a few basic points to help your understanding of technical analysis and chart reading. If you think of your chart as a roadmap to success. The more detail and the better you read the charts the less likely you are to get lost.
Price reflects the perceptions and action taken by the global speculators. It is the tug of war between buyers and sellers in the trading pit that creates price movement. Meaning that all fundamental factors are quickly discounted in price. By studying the price charts, you are indirectly seeing the fundamental and market psychology all at once - after all the market is feed by two emotions - Greed and Fear and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.
Be aware trading carries risk and not all strategies or rules work the same every time or have the same results for each trader. You should always understand your risks.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.