This market trading analysis must be done before trading to find out if the price will go up or down, so that later traders can decide whether to buy or sell. There are usually two market analysis techniques used in conducting transactions for financial products such as stocks, commodities, or other products, namely fundamental analysis and technical analysis. Here's how to do technical analysis in forex trading, namely:
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 traders can choose which trend they will take advantage of, it is advisable to look for long-term trends and follow them.
If the trader has recognized the trend, then the best trading strategy that a trader needs to have is to take a position in the direction of the current trend. If the current trend is up (uptrend), then traders should pursue buying opportunities. Conversely, if the current trend is down (downtrend), then look for selling opportunities.
Determine Support and Resistance Levels
In forex trading, this strategy is a boundary that connects the highs and lows of a price where traders can look for opportunities to buy in the support area or sell in the resistance area. If in the first step the trader takes a position in the direction of the trend and sees the current trend as an uptrend, then look for a long position in the support area, and vice versa.
Trend Validation with Moving Average Indicator
Moving average indicators can clarify the direction of the trend by smoothing fluctuations in price movements. Traders can look at moving averages (MAs) to help identify trends. The moving average can function as resistance if its position is above the price movement, and if the moving average is below the price movement then its function can turn into support.
This is because the moving average is fairly simple and quite objective in determining the trend, so this indicator is often used as a reference in forex trading.
Confirm with 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 or when the price is considered low enough at that time, and is often followed by a price increase.
When the oscillator indicator has shown an overbought indication, traders need to wait for a sell signal confirmation, and vice versa.
The most common thing to note is that it is not always overbought or oversold conditions followed by a reversal of the price movement. There are times when the indicator continues to be in the overbought or oversold area for some time, but the price continues to move in the previous direction. Therefore, it is important for traders to adjust the signals given by this indicator to the current trend. In uptrend conditions, it is enough for traders to look for buy signals only. On the other hand, in a downtrend, traders simply look for sell signals.
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Sebelum menjadi trader sukses, perlu dipahami bahwa ada berbagai macam tingkatan trader forex yang harus dilalui. Tingkatan-tingkatan tersebut biasanya dibedakan dari beberapa kriteria. Jika dilihat dari pengalaman, pengetahuan, cara berfikir, dan sikap mentalnya, seorang trader dapat dikategorikan dalam 5 tingkatan. Trader Pemula Seorang trader pemula pada umumnya masih merasa asing terhadap pasar forex. Trading forex dianggap sesuatu yang baru dan mungkin agak unik atau mengasyikkan. Mereka cenderung ingin mengetahui segala hal yang berhubungan dengan trading dan pasar forex dengan cepat dan instan. Baik analisa fundamental maupun analisa teknikal dipelajarinya dengan cepat. Trader pemula selalu mencari dan mempelajari cara-cara yang gampang, sederhana, dan segera dapat digunakan untuk trading. Pada umumnya, mereka mengharap profit besar dari trading forex. Trader Profesional Dari sebutan "profesional" yang disandangnya, memang profesi utama trader di tingkatan ini adalah t
SNR (Support and Resistance) is fairly popular in the world of forex trading. This is one of the most frequently used techniques in technical analysis. Without it, traders will experience difficulties and even lose in carrying out trading activities. The support point is the point which is believed to be the lowest point of an asset in a certain period. While the resistance point is the point that is believed to be the highest point of an asset in a certain period. In simple terms, support and resistance are likened to the two most discussed attributes in analysis where support is a level that has the potential to withstand price declines. Meanwhile, resistance is a level area that has the potential to hold back price increases. These levels are used to determine whether the price will continue or reverse. Basically, SNR aims to find out the right area when taking a buy or sell position and determine the target price movement. The support area is generally an area used as a reference f
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