There are many trading tools you can use. Question is which tool is the best? Or maybe you should stick to the fundamental analysis?
In this post we won’t argue which one is better – technical or fundamental analysis. We will focus on technical analysis and do a quick overview which tools you may find most interesting and useful.
This is a classic position when it comes to trading. It is one of the oldest technical indicators. You can build many trading systems based on averages. In some systems averages are the main signal to sell or buy stock. In other systems they do not give signals but are important source of informations about support, resistance and current trend. You can use them in your trading or in long-term approach, for example when you want to change franc suisse to euro or other currency.
There are many indicators out there but MACD is very popular. It was invented in the 70’s and it is based on moving averages. You can of course change parameters but the most popular are 12, 26, 9 and it is a good idea to start from the standard ones (more).
This is a cool technique based on Fibonacci numbers. You can find many tools like Fibonacci triangle, Fibonacci retracement, Fibonacci extension and many others. They are are based on the same numbers. With their help you can predict where move may end. It is a great help when you want to open a position or take a profit. With that technique you have best (and working) support and resistance levels.
There are trades who prefer to trade based on price action. They do not use oscillators, averages or other tools. They simply follow the price action and make trade decisions based on their observations. This is not an easy thing to learn but you can find many traders who use price action and make very good money. It is worth to give it a try.
We cover only some of trading tools. There are so many of them. We highly recommend to learn more about them and test them in practice.