Most of traders rely on technical analysis to trade the forex market analyzing past price patterns is used to forecast future performance. Technical analysis can be done on currency trading, stocks, commodity trading, and almost any instrument. Technical analysis involves utilizing trading charts such as candlesticks and examining chart patterns to obtain an understanding of asset prices. Even though technical analysis is favored by certain traders, it’s best to remember that past prices do not guarantee future performance. Key technical analysis terms contain support and resistance levels, trendlines, and moving averages.

We at XGLOBAL your favored forex broker has put together some glossary terms to boost the knowledge of our traders while learning how to trade on the Mt5 platform successfully.

Terms:

Support Level: Support level refers to the point at which an asset is in high enough demand that it’s hard for it to fall more.

Resistance Level: The resistance level refers to the point at which an asset has a hard time rising further due to strong supply.

Trendline: Trendlines are lines that show an asset’s certain price trends. These lines can be used in technical analysis in order to help traders assess the maximum highs and lows of a certain asset.

Moving Average: Moving averages are technical indicators or statistics that help technical analysis traders gauge the direction of a certain assets.

Our clients can download mt5 and sign up with a demo account at first to test it as it is rated the best trading platform.