This is the TimeToTrade help wiki. Use the TimeToTrade Trigger Trading Technology™ to execute your trades when Price, Candle Stick, Trend Line, Volume and Technical Analysis chart conditions are met - no coding required. Trade directly in the world’s global markets. Backtest your Trading Strategies. Calculate your UK HMRC Capital Gains Tax liabilities. Manage your Investment Club.
Technical Analysis: A Beginners Guide
“History repeats itself”. Certainly in the stock markets, if we look at past price movements we see patterns repeating over and over again. Technical analysis is a method of categorising those patterns and statistically analysing historical trading data to identify trends to help forecast how a security might perform in the future.
There are a variety of different classes of technical analysis tools and indicators available to use with the charts. The indicators can be grouped as follows:
- Trend lines, Support & Resistance levels and Fibonacci Studies are used to predict where and how a price is likely to move and to identify potential price reversal points.
- Trend Following Momentum Indicators "follow the trend". They are useful in helping to confirm the overall direction of price movement. These indicators are considered “lagging indicators” as they lag behind the current price movement -and so whilst good at keeping you on the right side of the trend, they can be late in signalling buy and sell opportunities. Examples of trending indicators include Moving Average or MACD.
- Momentum Oscillators measure price momentum and oscillate up and down between set limits over a centre line. These indicators are typically “leading indicators”, that is they may give insight into where the price may go in the future. Examples of momentum indicators are RSI and Stochastic.
- Volatility Indicators measure the degree of fluctuation in price movement over a specified timeframe. High volatility means the price is fluctuating dramatically, low volatility means the price is stable and remaining relatively constant. Examples of volatility indicators are Bollinger Bands (which compare a market’s current price to its moving average) and Chaikin Volatility (which compares price to its high-low price range). Volatility indicators are best used in combination with other indicators (eg trend / oscillators) to confirm the direction of the price movement.
It is worth bearing in mind some general pointers when using technical analysis:
- Before using any indicators, it is important to determine the direction of the major trend. Which indicators to use and their interpretation varies depending on whether the security is trending up / down or trading in a sideways range, For example, if the market is trading sideways then Stochastics or RSI are useful in identifying overbought / oversold conditions.
- Set indicator parameters and chart interval to suit your trading style or particular strategy. It is generally suggested to use longer periods if you are long term buy and hold or swing trader. Use shorter periods for day trading.
- Don’t rely on signals from one technical indicator in isolation or signals from a combination of indicators of the same grouping. If a technical indicator gives a buy or sell signal, look for confirmation of the signal from the indicators in other groupings before acting.
The Technical Analysis Guide section provides an introduction to how technical analysis can be interpreted and used to time trades. The descriptions and examples provided are intended as a general guide only and do not constitute advice or recommendation. This is not a definitive guide – there are many other ways to use and interpret the indicators depending on market conditions and personal preference.
It is important to remember that markets fall as well as rise; that all technical indicators are based on past price performance and that past performance is not necessarily indicative of future performance. Before using any indicators you must do your own research.
It has never been easier to execute your trading strategy. Our Trigger Trading Technology ® means you can now automatically execute your trades directly in the world’s global markets.
You need never miss a trading opportunity again!
Do you want to:
- buy when your technical analysis chart conditions are met? Really buy, not just get an email or sms alert?
- or sell when a support trend line is broken?
- or back-test your strategy going back as far as 30 years?
TimeToTrade's Trigger Trading Technology™ is truly game changing. It gives you a trading advantage. The power to take your trading to a new level.
Open a FREE TimeToTrade account today to:
- Trade UK, US and European Shares - apply now
- Execute trades when your Price, Candlestick, Trend Line, Volume and Technical Analysis chart conditions are met using the Trigger Trading Technology® - learn more - help video
- Email and SMS Trigger Trading™ Alerts - learn more
- Trade Off The Chart - learn more
- Back Test Trading Strategies with up to 30 years of historical data - learn more
- Create Simulated Trading Accounts to test your Trigger Trading™ Strategies - learn more
- Real time Forex, UK, European and US stock market data - learn more
- 170+ Technical Analysis and Candlestick Pattern Indicators - learn more
- All the tools you need to set up and run a successful investment club - learn more
- Manage your Portfolio and calculate UK HMRC Capital Gains liabilities and SA 108 CGT Tax Returns - learn more
- Create Trading Competitions for you and your friends - learn more
- Apply for a trading account today to get the Live Account Features - apply now
Apply now to try our superb platform and get your trading advantage.
The information and data provided is for educational and informational purposes only. Interpretation and use of the information and data provided is at the user's own risk. All information and data on this website is obtained from sources believed to be accurate and reliable. However, errors or omissions are possible due to human and/or mechanical error. All information and data is provided "as is" without warranty of any kind. We make no representations as to the accuracy, completeness, or timeliness of the information and data on this site and we reserve the right, in its sole discretion and without any obligation, to change, make improvements to, or correct any errors or omissions in any portion of the services at any times. Past performance is not a guarantee of future results. Trading carries a high level of risk to your capital and can result in losses that exceed your deposits. It may not be suitable for everyone so please ensure you fully understand the risks involved.
All services are provided by TigerWit Limited. TimeToTrade is a trading name of TigerWit Limited (a company registered in England and Wales under number 9479466). Our Registered address is TigerWit, 7th Floor, Augustine House, 6A Austin Friars, London, EC2N 2HA, England. TigerWit Limited is authorised and regulated by the Financial Conduct Authority number 679941.
The trading services offered by TigerWit Limited are not available to residents of the United States and are not intended for the use of any person in any country where such services would be contrary to local laws or regulations. Subscriptions to TimeToTrade products are available if you are not eligible for trading services.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading spread bets with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. All clients should be aware that trading involves risk.