Technical Analysis Definition | CFI JO
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technical analysis

The two most common forms of analysis used by traders are fundamental analysis and technical analysis. Sometimes, these are used in combination with each other and other times, separately. It all depends on your trading style and strategy.


Technical analysis makes it easier to identify support and resistance levels. When you can do this, you can make better trading decisions as it helps you decide whether it is a good idea to invest in a specific financial instrument or not. When prices break these price points, known as support and resistance levels, that have been identified, it means that there have been significant changes in sentiment.


Technical analysis can also help you analyze trends and better understand current price action. The combination of tools that can be used can help traders pinpoint more accurate entries and exits.


Key takeaways:

  • Technical analysis makes it easier to identify support and resistance levels.
  • Support levels generally identify a price point at which the markets are unlikely to move lower.
  • Resistance levels are prices identified in a chart that the market is unlikely to break above.
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Credit Financial Invest for
Financial Brokerage Ltd
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We would like to remind that while we endeavour to provide best possible services, CFI provides execution only services and any information, reports, opinions, commentary or other material he received directly from CFI or from its employees or through any provided analytical tools or third party research provided to the client from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions. The Client commits to make his own research and from external sources as well to make any investment. The Client agrees that CFI will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of any report provided should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.

Forex and CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financial Invest for Financial Brokerage Ltd provides general information that does not take into account your objectives, financial situation or needs. The content of this website must not be interpreted as personal advice. Please ensure that you understand the risks involved and seek independent advice if necessary.

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