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Technical Analysis

Master the art of reading price charts, spotting patterns and using indicators to make smarter trading decisions.

Practice on Demo Fundamental Analysis →
Core Principles

The 3 Pillars of Technical Analysis

Every technical analyst works from three foundational assumptions about how markets behave.

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01

Market Action Discounts Everything

The actual price reflects everything known to the market — inflation, interest rates, supply/demand, political factors, and sentiment. Technical analysts focus purely on price movement.

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02

Prices Move in Trends

Technical analysis identifies patterns that have long been recognized as significant. For any given pattern there is a high probability it will produce the expected result — these patterns repeat consistently.

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03

History Repeats Itself

Forex chart patterns have been recognized and categorized over 100+ years. The manner in which many patterns repeat leads to the conclusion that human psychology changes very little over time.

Live Chart

Practise Technical Analysis Live

Use real-time charts with full indicator access — just like on the MT5 platform.

Chart Types

Types of Price Charts

Choosing the right chart type gives you a clearer picture of market behaviour.

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Line Chart

The simplest form, connecting closing prices to form a continuous line. Excellent for identifying support and resistance levels and seeing the big-picture trend at a glance.

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Bar Chart (OHLC)

Shows Open, High, Low and Close for each period. Popular with short-term traders because it clearly displays the full trading price range during each session.

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Candlestick Chart

The most popular chart type. Each candle shows Open, High, Low and Close. The body colour shows bullish (up) or bearish (down) sessions at a glance — ideal for pattern recognition.

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Point & Figure Chart

Based purely on price movement, not time. Filters out minor fluctuations and focuses only on significant price changes — useful for identifying true support/resistance zones.

Trend Analysis

Three Types of Market Trend

Understanding trend direction is the first step in any technical trading strategy.

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Uptrend (Bullish)

A series of higher highs and higher lows. The market is moving upward overall. Trend line is drawn along successive reaction lows — look for long opportunities.

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Downtrend (Bearish)

A series of lower highs and lower lows. The market is in decline. Trend line is drawn along successive peaks — look for short opportunities.

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Sideways (Neutral)

Price moves horizontally between support and resistance. No clear directional bias. Range-trading strategies work best — buy at support, sell at resistance.

🛡️ Support Levels

Support is a price area where buying interest overcomes selling pressure, preventing the price from falling further. When price reaches a support level multiple times without breaking it, that level is confirmed as significant.

🚧 Resistance Levels

Resistance is the opposite — a price level where selling overcomes buying, turning prices back down. Support and resistance levels often appear in pairs, creating a tradable range until one level breaks.

Indicators

Top 10 Forex Trading Indicators

These are the most widely used technical indicators — all available on the MT5 platform.

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Trend

Moving Average (MA)

Shows average price over a chosen period. Price above MA = buyers in control; price below = sellers. Use to confirm trend direction and spot potential entries.

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Volatility

Bollinger Bands

Three bands that measure price volatility. Upper band = overbought zone; lower band = oversold zone. Bands narrow in low volatility and widen during breakouts.

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Volatility

Average True Range (ATR)

Measures market volatility by calculating the average range between highs and lows. Essential for position sizing and setting stop-loss levels proportionate to market conditions.

Trend

MACD

Shows the force driving the market and identifies when a trend is losing momentum. Calculated as: 12-Period EMA minus 26-Period EMA. Signal line crossovers generate buy/sell signals.

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Trend

Fibonacci Retracements

Based on the golden ratio (1.618). Key levels (23.6%, 38.2%, 61.8%) identify areas where price may retrace before continuing its trend — excellent for entry timing.

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Momentum

RSI (Relative Strength Index)

Most popular oscillator. Values above 70 = overbought; below 30 = oversold. Many traders use 80/20 levels for stronger signals. Ideal for spotting potential reversals.

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Trend

Pivot Points

Show demand-supply balance levels. Price at pivot = balanced market; above pivot = bullish demand; below pivot = bearish supply. Used daily by professional day traders.

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Momentum

Stochastic Oscillator

Identifies momentum and overbought/oversold zones by comparing closing price to its trading range over a period. %K and %D line crossovers provide trade signals.

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Volatility

Donchian Channels

Three lines formed by moving average calculations showing the highest high and lowest low over a period. The channel width reflects market volatility — wider = more volatile.

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Trend

Parabolic SAR

The Parabolic Stop and Reverse (PSAR) identifies trend direction and short-term reversal points. Dots below price = uptrend (buy signal); dots above price = downtrend (sell signal). Excellent for trailing stop-loss placement.

Apply Your Knowledge on a Real Chart

Open a free demo account and practise all these indicators on live market data — no risk, no deposit needed.

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