Master the art of reading price charts, spotting patterns and using indicators to make smarter trading decisions.
Every technical analyst works from three foundational assumptions about how markets behave.
The actual price reflects everything known to the market — inflation, interest rates, supply/demand, political factors, and sentiment. Technical analysts focus purely on price movement.
Technical analysis identifies patterns that have long been recognized as significant. For any given pattern there is a high probability it will produce the expected result — these patterns repeat consistently.
Forex chart patterns have been recognized and categorized over 100+ years. The manner in which many patterns repeat leads to the conclusion that human psychology changes very little over time.
Use real-time charts with full indicator access — just like on the MT5 platform.
Choosing the right chart type gives you a clearer picture of market behaviour.
The simplest form, connecting closing prices to form a continuous line. Excellent for identifying support and resistance levels and seeing the big-picture trend at a glance.
Shows Open, High, Low and Close for each period. Popular with short-term traders because it clearly displays the full trading price range during each session.
The most popular chart type. Each candle shows Open, High, Low and Close. The body colour shows bullish (up) or bearish (down) sessions at a glance — ideal for pattern recognition.
Based purely on price movement, not time. Filters out minor fluctuations and focuses only on significant price changes — useful for identifying true support/resistance zones.
Understanding trend direction is the first step in any technical trading strategy.
A series of higher highs and higher lows. The market is moving upward overall. Trend line is drawn along successive reaction lows — look for long opportunities.
A series of lower highs and lower lows. The market is in decline. Trend line is drawn along successive peaks — look for short opportunities.
Price moves horizontally between support and resistance. No clear directional bias. Range-trading strategies work best — buy at support, sell at resistance.
Support is a price area where buying interest overcomes selling pressure, preventing the price from falling further. When price reaches a support level multiple times without breaking it, that level is confirmed as significant.
Resistance is the opposite — a price level where selling overcomes buying, turning prices back down. Support and resistance levels often appear in pairs, creating a tradable range until one level breaks.
These are the most widely used technical indicators — all available on the MT5 platform.
Shows average price over a chosen period. Price above MA = buyers in control; price below = sellers. Use to confirm trend direction and spot potential entries.
Three bands that measure price volatility. Upper band = overbought zone; lower band = oversold zone. Bands narrow in low volatility and widen during breakouts.
Measures market volatility by calculating the average range between highs and lows. Essential for position sizing and setting stop-loss levels proportionate to market conditions.
Shows the force driving the market and identifies when a trend is losing momentum. Calculated as: 12-Period EMA minus 26-Period EMA. Signal line crossovers generate buy/sell signals.
Based on the golden ratio (1.618). Key levels (23.6%, 38.2%, 61.8%) identify areas where price may retrace before continuing its trend — excellent for entry timing.
Most popular oscillator. Values above 70 = overbought; below 30 = oversold. Many traders use 80/20 levels for stronger signals. Ideal for spotting potential reversals.
Show demand-supply balance levels. Price at pivot = balanced market; above pivot = bullish demand; below pivot = bearish supply. Used daily by professional day traders.
Identifies momentum and overbought/oversold zones by comparing closing price to its trading range over a period. %K and %D line crossovers provide trade signals.
Three lines formed by moving average calculations showing the highest high and lowest low over a period. The channel width reflects market volatility — wider = more volatile.
The Parabolic Stop and Reverse (PSAR) identifies trend direction and short-term reversal points. Dots below price = uptrend (buy signal); dots above price = downtrend (sell signal). Excellent for trailing stop-loss placement.
Open a free demo account and practise all these indicators on live market data — no risk, no deposit needed.