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Introduction to Trading

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Currency Pair Trading

Technical Analysis

Introduction
Charts
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Support and Resistance
Continuation Patterns
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Fibonacci and Elliot Wave

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INTRODUCTION TO TECHNICAL ANALYSIS

There are two basic methods of analysis related to investing; technical and fundamental. Fundamental analysis looks at an investment focusing on the qualities of its products, balance sheet, supply and demand, and the total economic climate as a whole. Technical analysis makes the assumption that the market has already taken in the fundamentals and interprets the market reaction to this information by analyzing price movements for a particular pattern.

Technical Analysis is the study of historical price to predict future movements. This can be achieved using many varied methodologies but they all, essentially, center on the study of previous price movements. It has proven to be an integral part of any successful traders’ strategy when it comes to Forex and CFD’s used for many years in the more traditional markets such as the stock market.

Charts are not the reason that the markets go up and down, they are the basis for the technical analysis and provide the visual interpretation of trends and actions within a market. Even a complete novice can look at a chart, make a prediction, and will have increased their chances of profits by making their predictions based on the movements in the chart. As a trader gains more and more experience of reading the charts and learns new methods of technical analysis, they will increase their chances of trading success even further.

Use the ECMarkets education section to learn more about technical analysis and how it can help you be a better and more profitable trader.

HIGH RISK INVESTMENT WARNING: Trading Foreign Exchange (Forex) and Contracts for Differences (CFD's) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please click here to read full risk warning. ECMarkets.com is a trading name of Safecap Investments Ltd, a Financial Services Company authorized and regulated by the Cyprus Securities Exchange Commission (CySEC) under license no. 092/08. Safecap Investments Ltd Is located at Treppides Tower, 6th Floor Kafkasou 9, Aglantzia P.O.Box 26522 CY2112, Nicosia, Cyprus.