Technical analysis involving past price data to predict the future. Technical analysis is used by many traders for trading stocks, commodities, forex, etc. Traders normally use fundamental analysis by looking at macroeconomic data like GDP, interest rates, etc. to know about the strength of a currency, as it is correlated with its economy. The fundamental analysis also gives you a
Then, technical analysis helps you to identify potential trading opportunities and the timing of the trades. Technical analysis is based on three premises.
- Price.
- Trends.
- History repeats.
You can look at various chart patterns like head and shoulders, double top, double bottom, etc. You can use leading indicators, lagging indicators, and oscillators. Most of the technical indicators are available for free on your MetaTrader platform.
For example, you can use the RSI indicator to find overbought and oversold conditions.