#Education
🎓ABC of Technical Analysis Tools
We’re happy to be back with our little educational section. Today let’s talk about easy and efficient instruments that everyone observes during trading!
1) Candles offer a graphical way of displaying price dynamics. A price candlestick consists of two main elements: body - a vertical rectangle that demonstrates the levels of opening and closing trades; wicks or shadows - vertical lines above and below the body of the candle, reflecting fluctuations in value between opening and closing.
The main advantage of a candlestick over bars and a line chart is that it allows you to get four important indicators for technical analysis at once: High - the highest price for the period; Low - the lowest price for the period; Open - period opening price; Close - closing price of the period.
2) Trendline is a diagonal (never horizontal) line between two critical highs or lows, helping to determine a prevailing trend. Depending on the direction, it can be a downtrend or uptrend. You can draw the most reliable trendlines in larger timeframes (daily, weekly, or monthly). Trendline analysis helps to track only useful information on the chart and cut off minor deviations. This helps to focus and learn to see the bigger picture before making any market decision.
3) Resistance and Support levels are the two main horizontal price levels. At the support level, falling price tends to slow down or reverse. This means that the price is more likely to "bounce" from this level than break it. However, once the price breaks this level, it will likely continue to fall until it finds another support level. And vice versa: at the resistance level, a rising price tends to slow down or reverse. The price would rather bounce off this level than break it. However, a break above this level opens the way for the price to rise further until it finds another resistance level.
These are basic instruments that you can use while trading. Pay attention to them, and you’ll surely boost your trading skill! ✨
🎓ABC of Technical Analysis Tools
We’re happy to be back with our little educational section. Today let’s talk about easy and efficient instruments that everyone observes during trading!
1) Candles offer a graphical way of displaying price dynamics. A price candlestick consists of two main elements: body - a vertical rectangle that demonstrates the levels of opening and closing trades; wicks or shadows - vertical lines above and below the body of the candle, reflecting fluctuations in value between opening and closing.
The main advantage of a candlestick over bars and a line chart is that it allows you to get four important indicators for technical analysis at once: High - the highest price for the period; Low - the lowest price for the period; Open - period opening price; Close - closing price of the period.
2) Trendline is a diagonal (never horizontal) line between two critical highs or lows, helping to determine a prevailing trend. Depending on the direction, it can be a downtrend or uptrend. You can draw the most reliable trendlines in larger timeframes (daily, weekly, or monthly). Trendline analysis helps to track only useful information on the chart and cut off minor deviations. This helps to focus and learn to see the bigger picture before making any market decision.
3) Resistance and Support levels are the two main horizontal price levels. At the support level, falling price tends to slow down or reverse. This means that the price is more likely to "bounce" from this level than break it. However, once the price breaks this level, it will likely continue to fall until it finds another support level. And vice versa: at the resistance level, a rising price tends to slow down or reverse. The price would rather bounce off this level than break it. However, a break above this level opens the way for the price to rise further until it finds another resistance level.
These are basic instruments that you can use while trading. Pay attention to them, and you’ll surely boost your trading skill! ✨
🥇#XAUUSD
Gold reached the upper border of the bearish flag 🐻Moreover, the RSI is touching the overbought zone.
🤳As soon as the price forms any reversal, consider opening a sell trade with targets at $1945, $1900.
🧐Are you bullish or bearish on the yellow metal?
Gold reached the upper border of the bearish flag 🐻Moreover, the RSI is touching the overbought zone.
🤳As soon as the price forms any reversal, consider opening a sell trade with targets at $1945, $1900.
🧐Are you bullish or bearish on the yellow metal?
#MarketNews
🇯🇵The yen could weaken further to its 1990 low, according to Societe Generale SA strategist Albert Edwards. Now USDJPY is approximately $121.780.
📈The S&P 500, Dow Jones and Nasdaq closed Thursday's regular session up more than 1%. Contracts for the S&P 500 held on to a flat line. Despite some losses earlier this week, the S&P 500 and Nasdaq are up for the second week in a row if levels hold until Friday's close.
🇺🇸Federal Reserve has stepped up talk of tightening monetary policy. Now Chicago Fed President Charles Evans and San Francisco Fed President Mary Daly are considering raising interest rates by 50 basis points at the upcoming Fed meeting due to the highest inflation level in 40 years.
🛢Oil prices have stabilized after EU leaders refrained from new steps to reduce imports of Russian oil. XBR is $115.80 now.
🟡Gold price rose to $1962.4 yesterday, approaching more than a weekly high in the previous session and gaining almost 2% in the week to date. Now it is about $1958.50 per ounce.
🇷🇺Russia is considering selling its oil and gas for crypto due to increased sanctions from the West. Thanks to that, Bitcoin has gained 4% since yesterday, it’s approximately $44071.
Have a great trading day! ✨
🇯🇵The yen could weaken further to its 1990 low, according to Societe Generale SA strategist Albert Edwards. Now USDJPY is approximately $121.780.
📈The S&P 500, Dow Jones and Nasdaq closed Thursday's regular session up more than 1%. Contracts for the S&P 500 held on to a flat line. Despite some losses earlier this week, the S&P 500 and Nasdaq are up for the second week in a row if levels hold until Friday's close.
🇺🇸Federal Reserve has stepped up talk of tightening monetary policy. Now Chicago Fed President Charles Evans and San Francisco Fed President Mary Daly are considering raising interest rates by 50 basis points at the upcoming Fed meeting due to the highest inflation level in 40 years.
🛢Oil prices have stabilized after EU leaders refrained from new steps to reduce imports of Russian oil. XBR is $115.80 now.
🟡Gold price rose to $1962.4 yesterday, approaching more than a weekly high in the previous session and gaining almost 2% in the week to date. Now it is about $1958.50 per ounce.
🇷🇺Russia is considering selling its oil and gas for crypto due to increased sanctions from the West. Thanks to that, Bitcoin has gained 4% since yesterday, it’s approximately $44071.
Have a great trading day! ✨