Technical Analysis
Analysis of historical price and volume data to forecast future movements. Technical analysts use charts, patterns and indicators to identify trading opportunities.
Related terms
Fundamental Analysis
Analysis of the economic and political factors that influence prices, from the overall health of an industry or country to company-specific details such as management decisions, revenue and profit. For currencies this includes interest rates, inflation, GDP growth and central bank policy, and it can be applied to indices, stocks, forex and commodities.
Read full definitionChartist
A trader who analyses a market’s price history to determine future price trends, using a range of analytical tools and indicators to conduct technical analysis on a price chart.
Read full definitionForex Chart
A graphic representation of two currencies’ relative price movements over time, usually with the time period on the x-axis and the exchange rate on the y-axis. Available in bar, candlestick and line formats, charts help technical analysts identify patterns and trends that could indicate entries, continuations, reversals and exits.
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Bar Chart
A chart type built from four significant points: the high and low prices, which form the vertical bar; the opening price, marked with a horizontal line to the left of the bar; and the closing price, marked with a horizontal line to the right.
Read full definitionBasing
A chart pattern showing when demand and supply of a product are almost equal, resulting in a narrow trading range and the merging of support and resistance levels.
Read full definitionBollinger Bands
A technical analysis tool consisting of a band plotted two standard deviations either side of a simple moving average, used to find support and resistance levels.
Read full definitionCandlestick Chart
A chart type used to analyse a market’s price. Unlike bar charts, candlestick charts show the market’s high, low, open and closing price within each period.
Read full definitionConsolidation
A period of range-bound activity after an extended price move, in which a market neither continues nor counters the longer-term trend.
Read full definitionCup and Handle
A technical analysis pattern named for its resemblance to a tea cup: a shallow, rounded saucer with a downward-trending handle extending from the right-hand side. The formation can occur over anything from several weeks to an entire year.
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