Technical Analysis

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Technical Analysis

Technical analysis complements fundamental analysis by focusing more on numbers, patterns, and statistics, instead of the intrinsic value of an asset. Traders employ technical analysis to try to estimate future price behavior based on past trading performance and price movements rather than fundamental health, and typically do so by referring to patterns on an asset’s price chart I our trading platform.

The concept behind technical analysis is that price trends themselves are a catalyst for future price trajectory, because history tends to repeat itself and therefor is predictable.

Technical Trends

Any underlying asset that is sensitive to changes in supply and demand can be forecasted with technical analysis. Stocks, bonds, commodities and currencies are all the focus of technical analysts, who believe that price changes are never random, and that the reason for any small or large movement can be identified with the proper strategy.

Some popular technical indicators used for this trading methodology are found below:

  • Fibonacci Retracements: Fibonacci retracements are technical indicators that demonstrate to traders where major support and resistance lines may appear. They can provide a good signal of where a trend might slow down, encounter more order activity, or reverse direction.
  • Moving Averages: Moving averages are a lagging indicator that can help illustrate to traders where the market is heading. The average price of an asset over different time periods is mapped onto the chart, showing broader trends and how they may intersect.
  • Relative Strength Index: The RSI is a tool that indicates the momentum behind price movements of an asset. It can show how strong or weak a current trend is, and when conditions are ripe for a reversal in either direction.
  • Fibonacci Retracements: Fibonacci retracements are technical indicators that demonstrate to traders where major support and resistance lines may appear. They can provide a good signal of where a trend might slow down, encounter more order activity, or reverse direction.

How do I trade with Acri?

  1. Create an Acri trading account
  2. Research through Technical analysis the trend of the asset you want to trade.
  3. Decide on your trading strategy.
  4. Take steps to manage your risk, always put your stoploss!
  5. Open and monitor your position

Open Your Acri Trading Account

With Acri you can trade cryptocurrencies, indices, shares, currency pairs and more with ease.
To apply for a live trading account, all you need to do is click the buttons below.