Easy Way of Technical Analysis in Trading – In today’s world most people are at home. Trading is one of the right ways to earn money. But in trading there are also advantages and disadvantages that will be obtained. Here are easy steps to do technical trading analysis that you can do
1. Get to know the current trend
See and recognize current trends. Starting from the long-term trend, then retreating to the mid-term or short-term trend.
Although you can choose which trend you will take advantage of, it is advisable to look for a long-term trend (major trend) and follow it.
If you have recognized the trend, then the best trading strategy you need to have is to take a position (transaction) in the direction of the current trend.
If the trend at that time is up (uptrend), then you should pursue buying opportunities. Conversely, if the current trend is down (downtrend), then look for selling opportunities.
2. Determine support and resistance levels
In forex trading, this strategy is a boundary that connects the highs and lows of a price where you can look for opportunities to buy in the support area or sell in the resistance area.
Also Read : Forex Trading Strategy
If in the first step you take a position in the direction of the trend and see the current trend as an uptrend, then look for a long position in the support area, and vice versa.
3. Validate the trend with the moving average indicator
Moving average indicators can clarify the direction of the trend by smoothing fluctuations in price movements. You can look at moving averages (MAs) to help identify trends.
MA can function as resistance if its position is above price movement, and if MA is below price movement then its function can turn into support.
Because the MA is fairly simple and quite objective in determining the trend, this indicator is often used as a reference in forex trading.
4. Confirm with the oscillator indicator
This type of indicator can give an idea of whether the market is in a state when the price is considered high enough at that time and is often followed by a decrease in price (overbought) or when the price is considered low enough at that time, and is often followed by an increase in price (oversold). .