Technical analysis is the study of historical price action in order to identify patterns and determine probabilities of future movements in the market through the use of technical studies, indicators, and other analysis tools. Technical analysis of a market can help you determine not only when and where to enter a market, but much more importantly, when and where to get out. Technical analysis is based on the theory that the markets are chaotic no one knows for sure what will happen next , but at the same time, price action is not completely random.
In other words, mathematical Chaos Theory proves that within a state of chaos there are identifiable patterns that tend to repeat. This type of chaotic behavior is observed in nature in the form of weather forecasts. For example, most traders will admit that there are no certainties when it comes to predicting exact price movements.
As a result, successful trading is not about being right or wrong: Remember, there is no magical combination of technical indicators that will unlock some sort of secret trading strategy. The secret of successful trading is good risk management, discipline, and the ability to control your emotions. Anyone can guess right and win every once in a while, but without risk management it is virtually impossible to remain profitable over time.
A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.
Please let us know how you would like to proceed. Understanding Technical Analysis Technical analysis is the study of historical price action in order to identify patterns and determine probabilities of future movements in the market through the use of technical studies, indicators, and other analysis tools. Technical analysis boils down to two things: Prices typically move in a zigzag fashion, and as a result, price action has only two states: Range — when prices zigzag sideways Trend — prices either zigzag higher up trend, or bull trend , or prices zigzag lower down trend, or bear trend Why is technical analysis important?
How can you use technical analysis? Develop a thorough trading plan for trading forex. Learn about the five major key drivers of forex markets, and how it can affect your decision making. Our forex analysts give their recommendations on managing risk.More...