The analysis of the market is mainly divided into fundamental and technical analysis. Although it is timing
key to succeed in Margin trading, methods of technical analysis are also indispensable.
Technical analysis is a technique that aims to predict the future trend of market price, hold the market trend with price (including turnover and execute price), and studies market fluctuation with chart as the principal means. Next, we will briefly introduce some concepts about technical analysis and technical indicators uses.
To make a technical analysis, we have to know the concept of “trend” first.In a general sense, trend is the direction where the market goes. More concretely and exactly speaking, market usually won’t develop straightly towards one direction. Market movement is characterized by zigs and zags. There are obvious “peaks” and “troughs” like waves in market movement. The direction formed bythese peaks and troughs are called market trend.An uptrend is a series of peaks and troughs in an upward line; a downtrend is a series of peaks and troughs in a downward line; a horizontal trend is a series of peaks and troughs extending horizontally.
A very clear rising trend,also called bull market,an opportunity to buy.
A very clear falling trend,also called bear market, an opportunity to sell.
No clear rise or fall, hover around a certain range.
Moving average is a value obtained by dividing the sum of close price over a time period by this specified period. Moving average includessimple moving average , exponential moving average , Weighted Moving Average etc. which can be used independently to calculate other technical indicators. Moving average is the basis of chart analysis and one of the most famous analysis tools among all technical analysis indicators.
Granvile Rules is the most classic method of using moving average. The Rules emphasizes position relation between the moving average and actual prices and summarizes buy and sell signals respectively into four different patterns.
Technical analysis is mainly classified into two types by method One is the trend-type analysis which determines the market fluctuation direction and follows the trend to take the advantage of an opportunity; the other is, oscillation–type analysis which guesses and estimates opportunities to buy and sell by analyzing strong/weak trends and extreme market conditions like overbought and oversold conditions. Generally speaking, the trend-type analysis is better for medium and long-term analysis, while the other type is more suitable for short-term prediction.
|Bollinger Bands - BOL||Exponential Moving Average - EMA||MACD|
|Parabolic - SAR||Simple Moving Average - SMA||Weighted Close - WC|
|Weighted Moving Average - WMA|
|Average True Range - ATR||Chaikin Volatility - CV||Detrended Price Oscillator - DPO|
|Fast Stochastic Oscillator - FSTO||MOM||Mass Index - MI|
|Price Oscillator - Price||Rate of Change - ROC||Relative Strength Index - RSI|
|Slow Stochastic Oscillator - SSTO||Standard Deviation - StdDev||Williams % R - W%R|
|Williams Accumulation Distribution - WAD|