What technical analysis is
Technical analysis is the study of price charts to judge where buyers and sellers are active and how price has behaved before. It works with price, time and, where available, volume. It does not look at interest rates, earnings or news. That is fundamental analysis, which many traders use alongside charts.
Forex technical analysis applies the same tools to currency pairs, metals, indices and other CFDs. A CFD (contract for difference) lets you trade price changes without owning the asset. The ideas are the same on MT4, MT5 or any other charting platform.
Technical analysis does not predict the future. It gives a structured way to describe the market, plan an entry, and decide in advance where a trade is wrong. Leveraged CFD and forex trading can lose money fast. A chart method never removes that risk.
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How this section is organised
The section has four layers. The full list of pages appears below this text.
- Concepts. These cover how markets move: trends, support and resistance, market structure, breakouts and pullbacks. They include method-based schools such as Dow Theory, Wyckoff and Smart Money Concepts.
- Indicators. These are grouped as trend, momentum, volatility and volume. Each page explains the formula in plain terms, the default settings in MetaTrader, how traders read it, and where it gives false signals.
- Candlestick patterns. These are single-candle and multi-candle shapes, split into reversal and continuation patterns.
- Chart patterns. These are larger formations such as triangles, flags, and head and shoulders, also split into reversal and continuation.
Every pattern and indicator page has an illustrated example on a real-style chart. You can filter the list by group to compare tools that do the same job.
Where a beginner should start
If you are learning technical analysis for beginners, follow this order. Each step builds on the one before.
- Technical analysis basics: what charts show and what they cannot show.
- Chart types: line, bar, candlestick and Renko charts.
- Market trends and support and resistance: most other tools build on these.
- Candlestick patterns: how to read a single bar and short sequences.
- A simple trend tool such as the EMA indicator, and a momentum tool such as the RSI indicator.
Practise on a demo account or in the practice simulator before risking money. Read risk management early, not after the first losing streak.
What an experienced trader will find
Experienced traders can go straight to the details:
- Default settings and what changing them does.
- Which indicators lag and which lead. See leading vs lagging indicators.
- Indicators that redraw past values. See repainting indicators.
- Multiple timeframe analysis and divergence.
- Order flow ideas such as liquidity sweeps and volume profile.
Each page also notes how an indicator behaves on instruments with uneven volatility, such as XAUUSD or NAS100, and where tick volume in forex differs from exchange volume.
To turn chart levels into position sizes and stops, use the ATR stop calculator, the Fibonacci calculator and the lot size calculator.
A note on using tools together
Indicators from the same group usually repeat each other. Two momentum oscillators on one chart mostly confirm the same thing. A more useful combination pairs tools from different groups. For example, a trend filter, a momentum reading and a volatility-based stop each answer a different question. For complete approaches, see trading strategies.
Frequent questions
Does technical analysis work in forex?
It describes price behaviour and helps with planning, but it gives no guaranteed outcome. Results depend on risk control, costs and discipline as much as on the method.
Which indicator should I learn first?
Most beginners start with a moving average and the RSI. These two show the difference between trend and momentum tools.
Do I need paid indicators?
No. The indicators covered here are standard in MetaTrader or are simple to build. Paid tools are not more accurate by default.
Can I use technical analysis on gold and indices?
Yes, the same tools apply. Volatility and trading hours differ, so test settings on each instrument separately. Our pages on metals and stock indices cover what is specific to those markets.
Is technical analysis enough on its own?
Many traders combine it with an economic calendar and fundamental analysis. Scheduled news can move price past any chart level.