Technical Analysis is Based on 3 Factors Common in the Energies Trading Market:

1. Price Moves in Trends

trading price movements follow trends. This means that after a trend has been established, the future market price movement is more likely to be in same direction as a trend than to be against it. Most energies strategies are based on this energies analysis concept - energies trend trading.

2. Price Movement Discounts Everything

Energies analysis only considers price movement and assumes that, at any given time, energies price reflects everything that has or could affect the energies instrument including even the fundamental factors. This only leaves the study of price, which is a product of the supply and demand for a particular energies instrument in the market.

3. History Tends to Repeat Itself

History repeats itself mainly in terms of price movement. The repetitive nature of market movements is attributed to traders investor psychology: in other words, energies trading participants tend to provide a consistent reaction to the market most of the time. Energies analysis uses energies setups to analyze these price movements. Although these charts represent historical data they are still relevant because they illustrate chart patterns that often repeat themselves.

List of All Technical Indicators - Technical Analysis Explained - Technical Analysis PDF

Understanding this energies analysis of the trading market can be a valuable energies tool in determining the trend of any energies market and assisting with entry and exit levels for your energies trades.

The goal of these energies analysis methods is to help traders determine when the market is trending, and when it is not. If the energies instrument is moving in one specific direction, then we want to be on board. If the energies instrument is not moving in a particular direction, all you are going to do is lose money as you will get whipsawed around and this is not what we want as energies investors.

Unfortunately, many traders fight the trend and buy or sell in the opposite direction of a this trend direction, trying to pick a top or a market bottom, only to see the market move further in direction of the trend.

Another common mistake traders often make is adding on to a losing energies position, averaging a loss. This is not a good energies strategy especially in a strongly trending market. It is something that experienced investors never do. The trend is your friend, never go against it.

This energies analysis studies alert investors of energies setups and there are no certainties in financial market. Profits come from using proven energies strategies & energies methods to find a trending energies and taking trades in the same direction of the trend.

With so many energies investors using similar energies tools, energies analysis can become a self fulfilling prophecy. If many energies investors use the same levels as a buying point, the price goes up as everyone will make similar energies analysis moves. However, the question is always how long these energies moves will last?

Understanding this energies analysis methods will give the charts some meaning when you look at them and apply energies analysis. Energies analysis will help you understand why certain price movements occurred.

charts are used with technical indicators to look for chart patterns that have occurred in the past under certain conditions. When these conditions are noted again, you can use the past energies chart patterns studies to make a buy or sell decision.

Some of the most common technical indicators include: Technical Analysis Explained

• Moving Averages Indicator
• Relative Strength Index Indicator
• Stochastic Oscillator Indicator
• MACD Indicator
• Energies Fibo Retracement Indicator
• Bollinger Bands Indicator

Most energies technical indicators are instanced separately from the chart usually below it. This is because these indicators often use a different scale than that of the price chart.

Some of the indicators are shown on the price chart itself, such as Moving Averages and Bollinger bands - these indicators are referred to as trading price overlays.

Explanation of these indicators is found under the topic: List of All Technical Indicators - Technical Analysis Trading Tutorial - Learn Energies Technical Analysis Tutorial - Technical Analysis Examples

SUMMARY

1. Technical Analysis Relies on Defining Probabilities
2. Technical Analysis Uses History of Energies Price Patterns
3. Technical Analysis Uses Several Analytical Tools (Indicators)
4. Technical Analysis Uses Energies Chart Patterns

How to Trade Energies With Technical Analysis Tutorial

Most energies traders prefer analysis - learning the energies analysis methods also takes time to learn due to its nature which involves abiding by the technical rules.

To learn how to trade energies successfully, it is important that you understand the 3 strategies, outlined below:

1. Energies Trading moves will always follow a trend which can be identified by looking at the energies setups or the candlesticks charts. If any energies investor tells you that you can also profit from the counter-trends consistently it will not be possible because the trend is the only proven method of making money in the market.

2. The market forces will drive the energies instrument energies prices up or down depending on supply and demand. Energies analysis seeks to measure the demand supply of a energies instrument using various energies analysis tools & energies indicators. The demand supply is reflected in the price action. Therefore, by simply looking at the price movements themselves you can try and predict what direction the price is likely to move towards using one or two technical indicators - energies analysis indicators like the moving average or support and resistance levels indicators.

3. The market not only shows the history of the past energies prices, but will also follow the trend that was in place, until its trend direction reverses. Some very important energies indicators used to determine these market movements are Moving Averages, MACD and Bollinger Bands Energies Indicators.

When price starts to consolidate, which means there is no trend, you should use a different approach to analyze the market. You should use support and resistance levels and breakout energies strategies to analyze the ranging market energies prices.

When the market retraces, you should use chart patterns and technical indicators to analyze whether the current energies trend will continue or reverse.