Forex Technical Analysis Tips to Maximize Trading Profits

Technical analysis  is considered to have more  tools  than  fundamental  analysis.  However, because it  is quite  difficult to use, it requires a deep understanding to  be able to make good use of it   .

 Important things in technical analysis

 a.  Basic concepts of forex technical analysis

This   type of  forex  analysis is used as an  analytical method that is able to predict the  direction of future price  movements by studying market  price data  in previous periods that have been formed on the chart.

b. Trendline concept in forex

Trendline is one of  the basic tools that are important to  know to help traders recognize the potential profit in forex trading just by drawing a line (trendline).

With the trendline, traders can find out the  support and resistance levels and their combination with the  best indicators to look for sell/buy opportunities.

c. The concept of  support and resistance of forex trading

An understanding of support and resistance is essential  to be  able to mark locations where  prices may experience significant movements.

Tips for doing the right technical analysis

 a. Recognizing ongoing trends

Whether long-term   or    medium-term or short-term, trends should be  well recognized  when trading.   Although traders are free to choose the type of trend that is used, it is recommended to choose the   type of long-term  trend  (major trend).

b. Menentukan support dan resistance

 This   limitation connecting the  highs and lows of  a price can be used to look for buy opportunities in the support area or sell in the resistance area. 

 c. Make the most  of  moving averages

Moving averages can clarify the direction of the trend by smoothing out fluctuations in price movements. MA can also  function as resistance  if it is in the price movement, and if it  is in the   price movement it will turn into support.

 d. Using oscillator indicator filters

This indicator  can give signals  that indicate a trend change.   This type of  indicator can give an idea of the  assumption of high prices in  the market, which is generally followed by a decrease in  price (overbought), and vice versa with oversold.

Adjust the signals given by  the indicator to the ongoing trend.

e. Menentukan stop loss dan target profit

When determining stop loss and profit targets, be sure to  pay attention to the risk-reward-ratio rule.

 Things to avoid when analyzing

 Be sure not to  break the  rules of the created strategy.

 Do not rush to make a transaction if there is no confirmed signal yet.

 Do not use trading strategies that have not been mastered/understood.

 Avoid using overly complicated trading strategies.

 Avoid changing strategies too often.

 Be sure to limit the risks when trading , such as stop loss.

 Forex technical analysis can maximize profits or avoid large losses that traders may experience.

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