7 key concepts of technical analysis 🔑

Learn the basics and apply them in your daily routine Learn the basics and apply them in your daily routine                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         [FBS]( [[fbsanalytics] FBS Analytics]( [Personal Area]( The basics of technical analysis [FBS]( Do you use technical analysis, {NAME}? Many traders, especially new ones, fear the complicated terminology analysts and experts use. It all sounds like something only professional traders can manage. However, even a few basic concepts will help you be more confident in trading. And as always, FBS is here to help. If you are already confident in your knowledge, skip to trading right away. [Proceed to trading]( [fbs] What is technical analysis? Technical analysis is based on research of price history. Analysts believe things that happened in the past would repeat in the future, so it is possible to predict price behavior based on its history. Types of technical analysis [fbs] Chart analysis relies on drawing lines and reviewing charts [fbs] Indicator analysis uses indicators based on various formulas [fbs] Key concepts of chart analysis [FBS]( Support and resistance lines These lines represent the values where the price bounces back and starts moving in the opposite direction. [Learn more](  ➔ [fbs] Chart patterns A price tends to form a pattern, and some patterns tend to repeat. When you see a common pattern on one of your real-life charts, you can expect the price to change direction accordingly. [FBS] Japanese candlesticks [FBS]( The Japanese invented their own approach to chart analysis. The most important candlestick pattern is the engulfing candle. When you see that the second candlestick’s body engulfs the first candlestick’s body, you can expect the price direction to change. [Learn more](  ➔ [fbs] The most popular indicators [FBS]( Simple moving average The simplest indicator. It is calculated as the average of the price, and it shows the overall price movement. Opening a sell trade is better if the line goes down, and vice versa. But if the price breaks above or below the moving average, it may change direction. [Learn more](  ➔ [FBS]( MACD It allows us to assess the strength of price movement. The indicator consists of the MACD histogram and the MACD line: • When MACD lines go up, you should open buy positions and vice versa. • If the MACD histogram rises, you may consider trading up (and trading down otherwise). • When the MACD line breaks the signal line moving up, it can be a signal to open buy positions (and otherwise). [Learn more](  ➔ [FBS]( RSI Relative Strength Index (RSI) is one of the most popular indicators. It consists of a line that moves between the overbought (upper) and oversold (lower) zones. A trader gets a signal to open a trade when the indicator returns to its regular working zone: • If the line returns from the overbought zone, it is time to open a sell position. • It is time to buy when the line returns from the oversold zone. [Learn more](  ➔ [fbs] Remember! • Any indicator can give a false signal. • Some indicators only apply to solid movements. • It is wise to use multiple indicators simultaneously, but don’t use too many: 2 or 3 should always be sufficient. [Apply your knowledge]( Keep learning and growing Now that you know a few simple concepts and indicators, you will understand the charts better when you log in to MetaTrader. These are only the basics, but this knowledge will serve as a foundation for you to learn further. FBS has a guidebook on technical analysis that you can refer to for further reference. [Learn more here]( *FBS tips and analytics do not constitute a call to trade, trading advice or recommendation and are for information only. Was this email useful? [YES]( [NO]( [Help Center](  |  [Personal Area]( You received this email because you registered at [fbs.com](. If you have any questions, please contact us via email at support@fbs.com [google_play]( [apple_stor]( Risk warning: Before you start trading, you should completely understand the risks involved with the currency market and trading on margin, and you should be aware of your level of experience. [instagram]( [facebook]( [twitter]( [telegram]( [youtube]( [Web Version](  |  [About FBS](  |  [Unsubscribe]( Trusted by traders