forex technical analysis

Good morning,

Forex technical analysis is used by traders to analyse the markets to provide an understanding of historical data to produce entry points in the market.

Technical analysis is a key method of forecasting price movements, especially in the forex market. Whereas in the other markets, such as stock or futures, technical analysis isn’t used as much.

The Elements of Technical Analysis

Technical analysis has existed in the market ever since we have had supply and demand that drives the market movement. This type of analysis is used mostly on charts due to the need for historical price data.

For most technical traders, the plan is to understand the current market conditions in order to analyse trade setups. To identify the major patterns, traders have developed techniques using analysis such as support and resistance alongside a multitude of technical indicators to trade.


Technical Analysis and how it helps?

There is nothing easy about analysing and trading the financial markets, there are so many variables which affect price movement. Researching all the variables is an incredibly difficult task.

TA is something traders can use as a short-cut to analyse all the variables by focussing on historical price data. It allows traders to analyse potential trade set ups in a relatively short period of time. All the technical analysis we use here at Platinum is based on price action techniques to provide you with the ability to chart anything and trade any currency pair you want.

Principles of Forex Technical Analysis

Traders will tend to favour trend patterns in the market, markets move in upward trends called bullish patterns. They also move in downward trends called bearish trends, a horizontal trend is called a ranging market.

Ranging markets are where the market is quite neutral going from swing highs to swing lows without really getting into any specific type of trend. This means that the bulls and bears are equal, in other words this means the buyers and sellers are equal in power.


Technical analysis is the method of analysing the markets by using historical price data to identify future patterns and entry points in the market. Price patterns are usually identified using candlestick patterns with various techniques such as support and resistance with a variety of technical indicators depending on the strategy.

We believe in technical analysis here at Platinum, and would recommend learning how to use this analysis in the correct way. Once learned correctly you can profit from the market on a consistent basis.


The Platinum Formula:

Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = Perfect Trade


At Platinum Trading Academy, United Kingdom, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time. We trade in an Institutional Way by letting the market come to us and being patient. Using Platinum’s Trading system you can take many Pips out of the market. We can ensure using this style of trading your trading will make a turnaround as you will become much more consistent.

If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live exactly how we approach the markets.

Download our free ebook to read about the various Trading Patterns that work in the Financial Market. Watch Trades of the Week Videos in our video gallery. Subscribe to Platinum’s Forex Newsletter.

Hopefully, you have enjoyed today’s article. Thanks for reading!

Have a fantastic day!

Nisha Patel

Live from the Platinum Trading Floor.