Technical Analysis

Historical Background Candlestick charting originated in 18th-century Japan, developed by a rice trader to analyse market psychology and anticipate price movements. Over time, this charting method evolved into the global standard for analysing market behaviour and price action. 1. Anatomy of a…

Within a trading terminal, financial markets can be observed across multiple timeframes, such as the 1-minute, 5-minute, 15-minute, hourly, daily, or weekly intervals. These varying timeframes enable traders and analysts to examine both short-term fluctuations and long-term trends. Candlesticks collectively form trends,…

1. Definition of Liquidity Liquidity refers to the ease with which an asset can be bought or sold in the market without causing a significant change in its price. In the foreign exchange (Forex) market, where daily transaction volumes exceed USD 7…

1. Introduction to Moving Averages (MA) A Moving Average (MA) is a technical indicator that applies statistical calculations to price data to smooth out fluctuations and highlight overall trends. It represents the average closing price of a financial instrument over a specific…

The Moving Average Convergence Divergence (MACD) is one of the most widely used tools in technical analysis. It assists market participants in determining whether market momentum favors a buy or sell position, thereby serving as a key decision-making indicator in trend-following and…

1. What is the KDJ indicator? The KDJ indicator is a momentum oscillator. It helps traders see whether a market is overbought or oversold, and it gives signals when trends might be about to change. It consists of three lines: K line…

1. What is the RSI? The Relative Strength Index (RSI) is a momentum indicator used in technical analysis to measure the magnitude of recent price changes and determine whether a financial instrument is overbought or oversold. The RSI is presented as an…

1. What is the CCI? The Commodity Channel Index (CCI) measures whether a financial instrument's price is beyond the normal distribution range. It is another indicator that highlights whether a financial instrument is overbought or oversold. Most indicators that evaluate overbought and…

1. What is the BOLL? Bollinger Bands are basically three lines, one above the price, one below, and one in the centre, creating a tube-like graphic throughout the market. The middle line is simply a moving average, while the upper and lower…

1. What is the Fibonacci Retracement Tool? The Fibonacci retracement is a charting tool used to identify potential pullback zones inside a trend. The tool plots a series of horizontal levels, typically between 0% and 100%, that mark potential support or resistance…

1. What is a trendline? A trendline is a visual representation of market direction. It connects two or more significant price points and illustrates whether the market is trending upward, downward, or moving sideways. Uptrend Trendline In an uptrend, a trendline connects…

1. What is a Trading Strategy? A trading strategy is a structured plan designed to guide decision-making in the financial markets. It provides a consistent framework for identifying opportunities, executing trades, and managing risk. A well-defined trading strategy typically includes: Entry and…

1. Definition of BOS and CHoCH Break of Structure (BOS) occurs when the price breaks a recent high or low.This indicates that the existing market structure has been extended in its current direction. And if the price continues to break market structure…

The Elliott five-wave pattern describes how market prices tend to move in a natural, wave-like sequence, which is categorized into five distinct waves. Wave 1: Initial Impulse Wave 1 takes the lowest point after a sharp move in either direction, the price…

1. What is Swing Trading? Swing trading is a short-to-medium-term trading style that aims to capture price movements occurring over several days to several weeks. Unlike day trading, where positions are opened and closed within the same trading session, swing trading focuses…

1. What is Supply and Demand Trading? Supply and Demand Trading is a price action–based analytical approach that emphasizes the economic principles of supply and demand within financial markets. While similar to support and resistance concepts, this method places greater focus on…

1. What Is the ORB Strategy? The Opening Range Breakout (ORB) strategy is based on the price range formed shortly after a market opens or when a major trading session begins. The strategy defines a range using the high and low of…

1. What is an FVG? A Fair Value Gap (FVG) can be classified as either bullish or bearish. An FVG forms when the market moves aggressively in one direction, creating a price imbalance caused by insufficient buying or selling activity within a…

1. What is an IFVG? An Inverse Fair Value Gap (IFVG) originates from the same structural formation as a standard FVG. It is created using a three-candle sequence, where the middle candle expands aggressively in one direction, producing a price imbalance. This…

1. Types of Chart Patterns Chart patterns are recurring shapes that form on price charts and are used to assess potential future price movements based on historical price behavior. They form a core component of technical analysis, requiring a clear understanding of…

1. Define the Trading Objective The first step in strategy development is defining clear objectives. This involves answering two essential questions: What is the desired trading goal? How much time and capital can be consistently committed? The answers help determine whether the…