Technical analysis is an essential competency for those who seek to make profound choices in the context of the flow of shares and other securities. I will summarise that no matter if you are a newcomer to trading or an experienced trader, knowledge of technical analysis is essential to succeed in trading. There is JustMarkets trading platform that provides various effective tools for improving the process of trading. In this article, we’ll guide you on the basics of the JustMarkets platform and the tools and features in this trading arena.

What is Technical Analysis?

Technical analysis is the process of analyzing past price data and trends, volume and any other graphical information that may be used to forecast market direction. Whereas, Fundamental analysis other than the price attached to an asset, Technical analysis wholly depends on the psychology behind the stock market and trends of the past. Charts and indicators are employed to try to discover when to buy or sell a security or contract by signalling opportunity.

JustMarkets offers its users a wide range of powerful analytical platforms used for prices’ analysis, the identification of trends and trading opportunities on the financial markets instrument: forex, shares, stock indexes, and commodities.

Key Technical Analysis Tools on JustMarkets

JustMarkets provides all sorts of charting tools and indicators that traders can use to establish good trading strategies. Let’s take a look at some of the most valuable features on the platform:

1. Interactive Charts

But at the center of this kind of analysis is the charting of prices. JustMarkets has dynamic and engaging charts, enabling the user to see the price fluctuations in real time from one minute to the month view. This platform has the ease that can allow the trader to switch from one charting type to other types like the line chart, bar chart, and candlestick chart which is common among the technical traders.

For instance, the candlestick chart provides comprehensive information of the price fluctuations in a security by offering the opening, closing, high and low prices of the specified period. This provides an easy way to determine kinds of patterns like “Doji,” “Hammer,” or “Engulfing” patterns that indicate possible shifts in the flow of the stock market.

2. Technical Indicators

Levels of indicated prices can be either simple arithmetic calculations of current price, volume, or open interest, or more complex indicators that allow traders to anticipate trends and trend reversals. On JustMarkets, traders can access a variety of technical indicators including:

Moving Averages (MA): These average out price data and aid in knowing the trend direction. Moving average can be used on a long term basis using the 50-day or the 200-day moving averages.

Relative Strength Index (RSI): The RSI is considered a momentum indicator mainly designed to identify the rate of price fluctuations. It is between 0 and 100 and is used to compare whether the asset is overbought or oversold.

Bollinger Bands: These bands make it easy to determine events of high fluctuation. When the ratio comes close to either the higher or lower band, there are indicators that a market reversal is imminent.

MACD (Moving Average Convergence Divergence): MACD today is considered a trend-following momentum indicator that represents the position of the difference between two moving averages of an asset’s price. It is normally applied to undertake the task of determining the strength and direction and momentum of a trend.

3. Drawing Tools for Chart Analysis

That is why the use of drawing tools can be vital in order to understand price trends and patterns. At JustMarkets, there are various options of drawing tools available to the trader with the help of which the trader can mark out different levels on a chart; trend line, Fibonnaci level and support & resistance line. For example, Fibonacci retracement alerts us of potential reversal areas relying on the recognized number known as the golden ratio.

Its functionality includes, for instance, Trendlines that make it easier to identify the direction and the power of a trend on the market. What makes a trendline more important is the number of touches it really has, since it helps traders to clearly understand the market trend.

Ways Of Utilizing JustMarkets Tools

When learning technical analysis on JustMarkets traders should pay attention to using several tools at once to build up their strategies. Here are a few key techniques:

Trend Confirmation: You should combine moving averages with the MACD indicator as a means of affirming a move. A situation when the two presented indicators point in the same direction should provoke entering a certain trade.

Identify Reversals: Utilise RSI in combination with candlestick signals and Bollinger Bands to look for the right signals for reversal purposes. That is why it is useful, for example, when the RSI is in the overbought zone and there is a figure like Doji on the candlestick chart.

Volatility Management: Superimpose the Bollinger Bands and key support resistance levels to estimate the market volatility and set variable stop loss positions.

Conclusion

As is well known, technical analysis techniques need practice, time, and proper instruments. JustMarkets provides every possible feature for charting, indicators, and drawing on the chart to help traders analyze the markets and make profits. The information combined with reliable trading techniques improve the decision-making process and eventually the results of trading. Whether you are in need of trend identification, reversal or volatility control in today’s rather challenging markets, JustMarkets provides you with everything you need.

Nieka Ranises