Technical analysis is the study of demand and supply on a particular currency in order to try and determine the direction in which the currency price may be heading. 5Markets offers a comprehensive set of technical analysis tools, enabling customers to become successful traders.

Although it sounds very complicated, technical analysis is more of an art than a science. Technical analysts try to understand the flow of the market and look for trends using a price chart. Most traders use candlestick charts overlaid with other indicators to understand chart patterns indicating future price action.

We offer a wide variety of technical analysis tools which you can use on our trading platform. There are several types of technical analysis indicators, under the following categories.

• Moving averages is a line which traces the closing price of a currency as a line through a given time period.
• Candlestick chart patterns are buy and sell signals indicated by the sequence or shape of one or more candles in the candlestick chart.
• Indicators are formulas centered on the price and volume of a currency measuring trends, money flow, volatility and momentum. Indicators usually augment additional information to the analysis of currency price action. They are used to confirm price movements in qualifying chart patterns and to generate buy and sell signals. A leading indicator leads price movements, and a lagging indicator trails price movements.
• Support and Resistance Tools work on the premise that prices always retrace in the opposite direction of a trend at a certain percentage of the price trend before resuming the original direction of the trend. The most popular support and resistance indicator is the Fibonacci Retracement tool.
• Market Sentiment is the expression of crowd behavior on price fluctuations and is the reason why exchange rates can be so different from the fundamental understanding of how the economy works. Certain tools help Forex traders gain a better understanding of market sentiment before making trading decisions. These include the Commitment of Traders (COT) report which shows Forex traders long and short contracts in the futures market. The Volatility Index (VIX) is another important tool. This measures the implied volatility of options that are bought and sold.

When trying to gauge the mood of the market, traders should never solely rely on technical tools but look at market sentiment as well.

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5Markets technical analysis provides services of technical analysis and research on financial instruments of Forex, Stock, Commodities and other financial markets. Our technical analysis reports are written by professional analysts with a deep understanding of the market. This section also provides charts, market reviews, forecasts and signals for major currency pairs and commodity instruments. You can view technical studies for each instrument like: support and resistance levels, pivot point and more. This 5Markets forex research tool will help simplify your trading decisions and improve your trading results.