Hello everyone and welcome back to another technical analysis video. In previous videos we learned about candlestick charts and support and resistance levels. Today we are going to learn about technical indicators that are key to every trader.
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SLIDE 10-Indicators slide
Technical indicators are tools with mathematical...
The question is always which MA to use when trading. One of the differences, as has been said, is that the EMA gives weight to recent prices. The EMA is moving faster it On the other hand, the SMA will need more time to recognize the changing trend.
However, this means that the EMA will be more outspoken in giving the wrong signals that may occur. It will show...
Now let’s talk about how to use these levels for possible entries and exit points like stop loss. Going back to the bullish example, let’s say that you got an entry here on the level of support. You definitely want a stop loss below this level that would be 10% below your entry price in case your trade turns against you. In terms of take profit now you will set it...
However in a bearish trend the previous support will now become the new resistance. We are looking at the market to break below the previous level of support and provide a trading opportunity.
Let’s take a look at a downtrend example now. In this case we have our high, our lower low and then our lower high and so on. Once we break below this level we will be...
Here we continue to have a higher high and a pullback that comes higher than the previous resistance level. This is resistance that turned into support, and this is how we can use these levels to find entry points.
