Michael Ross - Trading Analysis

Table of Contents

Trading Analysis

The Practical Guide to Learn Step by Step the REAL Technical Analysis

Michael Ross

Copyright 2018 by Michael Ross

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Introduction

C ongratulations on downloading Trading Analysis: The Practical Guide to Learn Step by Step the REAL Technical Analysis and thank you for doing so. When it comes to ensuring that your time in the investment markets is as productive as possible, there are fewer better ways of going about doing so than by learning to use all that technical analysis has to offer. Unfortunately, while technical analysis isnt too complicated once you get the hang of it, the barrier to entry is difficult enough to get past that most people give up before they even get started.

Difficult does not mean impossible, however, which is why the following chapters will discuss everything you need to know, not just to use technical analysis, but to achieve a level of mastery over it that many traders will never reach. First, you will learn all about the basics of technical analysis including its key components and the types of charts you will be dealing with most frequently. Next, you will learn all about the key indicators that you will need to know in order to start taking full advantage of the trends you find while watching the market. With the basics out of the way, you will then learn all about one of the most useful aspects of the market you will measure using technical analysis known as momentum as well as how to utilize it to reliably turn a profit.

From there, you will learn more about charting with candlesticks, including indicators to be on the lookout for and useful strategies to try. You will then learn about a wide variety of different technical analysis patterns that you can keep an eye out for as well as how to best profit from the results when you do so. Finally, you will learn about how to get the most out of technical analysis by paring it with fundamental analysis.

There are plenty of books on this subject on the market, thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible, please enjoy!

Chapter 1:

Technical Analysis Explained

W hen it comes to ensuring your successful trade percentage is as high as possible, regardless of what investment market you are working in, understanding where the market has been, as well as where it is going is, quite naturally, extremely important. Technical analysis is just the tool for the job as it allows you to study past market trends in hopes of predicting future ones.

Technical analysis is for you if you enjoy the idea of determining likely future performance based on previous currency or currency pair price movements without having to dig through all of the paperwork that is associated with fundamental analysis. While the past will never be able to completely predict the future with perfect clarity, when it is combined with an understanding of market mentality it can be an effective way to generate accurate predictions as long as you understand its shortcomings.

Price charts

The key to unlocking everything that technical analysis can do lies in the price chart which is a standard chart with an x and a y axis. The price is measured via the vertical axis and the time is measured on the horizontal axis. There are numerous different types of price charts out there, each with its own set of proponents; some of these charts include the line chart, the tick chart, the candlestick chart, the Heikin-Ashi chart, the bar chart, the Kagi chart and the Renko chart. However, the ones you are going to be dealing with the most are likely going to be the point and click chart, the line chart, the candlestick chart and the bar chart.

Line chart: Of all the types of charts that are out there, the line chart is the simplest to use because it only presents a small slice of the potential information you will get from most other types of charts. Specifically, they show the closing price of the underlying asset you are following for a fixed period of time. The titular lines are formed when the closing price points are connected with a line. When reading a line chart, you will need to keep in mind that it is not able to show a visual range that the points reached which means you wont be privy to either opening or closing price details. Even so, this chart still has its uses as it removes all the noise from the market and only focuses on a single band of facts which is why it is commonly used by technical traders of all skill levels.