Technical Analysis Definition | CFI LB

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.
CFI Financial Group is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
CFI Financial Group has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest - CFI LEBANON
BDL no. 40
1019238,
Ellipse Center 3rd floor, Charles
Malek Avenue, Achrafieh

CFI provides execution-only services and does not provide any investment advice. To make an investment decision, you cannot rely on the content of this website, or on any information, opinion, report or other materials (“Information”) you receive from CFI, or its representatives. Such Information is general and does not consider your objectives and your financial situation, thus they shall not be considered in any way as an express or implied promise nor a guarantee of any profit or limit of loss. CFI shall not bear any liability in case you used or relied on such Information. Please ensure that you make your own research and seek independent advice if necessary.

Forex and CFDs are leveraged products that incur a high level of risk. A small adverse market movement may expose the client to lose the entire invested capital. The majority of retail client accounts lose money when trading in CFDs. Please be aware of trading risks and that you could sustain a loss exceeding your deposited funds, even if a stop loss is used.

CFI Lebanon is regulated by the Banque du Liban and the Capital Markets Authority

niss
forme
The Best Online Financial Trading Services, Middle East, 2020
Entrepreneur Magazine

Please publish modules in offcanvas position.