As you know by now, my job is to travel around the world and deliver educational seminars and workshops on how to trade the financial markets.
My favorite approach in analyzing financial instruments is, of course, that of Technical Analysis.
What amazes me about Technical Analysis is that charts not only present the price fluctuations and their trends but also the crowd’s psychology.
So, as a certified technical analyst, I look at the price charts to decipher what the crowd’s next move is going to be.
Yes, of course, nobody knows for sure, but my experience and knowledge convinced me that the crowds leave their trails behind more often than one might think.
As a beginner, you may be wondering how to do that.
Well, in the early steps of your trading journey, you may use a number of popular technical tools to help you navigate the markets.
For example, you may use the following:
- Moving Average
- The Momentum Oscillator
- The Relative Strength Index
- The Stochastics
- The Moving Average Convergence/Divergence and the
- Bollinger Bands
Of course, there are many more indicators and oscillators out there, but most of them attempt to identify the trend and gauge the momentum.
Remember that the trend is your friend.