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Way to Trade CFDs

Author: Tam Pin
by Tam Pin
Posted: Feb 14, 2020

Technical analysis defines for traders and investors clear buying and selling opportunities in the markets by observing support and resistance lines. Its important to note that many traders dismiss technical analysis and claim that all it does is give you a representation of past price action and reveals nothing about the future. Market technicians however, would argue that technical analysis, when used correctly has proven to be not just a reliable trading tool, but the only trading tool for many successful traders.

Technical Analysis is the Study of Prices on Charts

Put simply, technical analysis involves the study of prices that are displayed on price charts. Technical analysts believe that the current prices on a chart reflect all the information needed to trade the markets. Contained in the prices are all the facts and human emotions that are dictating in which direction the price is moving, Ultimately prices are in fact a reflection of supply and demand. Technical analysts believe that all the information they need is in fact represented in the chart they are looking at, they tend to disregard any fundamentals and concentrate solely on the price itself.

There are plenty of different tools available for chartists, and getting your hands on some backdated data has never been easier. There are also lots of different time-frames and types of charts, for example a one minute chart for the active day trader and a daily chart for less active traders. You can also choose from 5min, 10min and 30 minute charts etc… according to your preferences. The main beneficial reason investors are so keen on technical analysis and the study of charts is because it eradicates all the noise and opinions of others and lets you base your decision solely on the price itself.

if you want to trade cfds successfully you should learn and know how to trade (https://www.cfdspy.com). It might sound difficult and it is but you have to make sure that you invest time into learning and the more you learn you learn the better you trade.

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Author: Tam Pin

Tam Pin

Member since: Dec 25, 2019
Published articles: 1

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