FX Growth Technical analysis
Reading charts, trends, support and resistance and the most common indicators.
What it is
Technical analysis studies past price and volume to find patterns and probabilities. It assumes price reflects all known information and that patterns repeat.
Charts and timeframes
Candlestick charts show the open, high, low and close of each period. Timeframes range from 1 minute to monthly; higher timeframes carry more weight.
Trend, support and resistance
An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows.
Support is a level where buyers have stepped in before; resistance is where sellers have. Broken resistance often becomes support.
Common indicators
Moving averages smooth price to show trend direction. RSI measures momentum and overbought/oversold conditions. MACD shows shifts in momentum. Bollinger Bands show volatility.
Indicators lag price — use them to confirm, not to replace, your read of the chart.
Key takeaways
- Trade in the direction of the higher-timeframe trend.
- Mark key support and resistance first.
- Indicators confirm; they don't predict.