Technical Analysis Tools

Relative Strength Index (RSI):

The RSI measures the ratio of up - movements to downward -movements and adjusts the calculation to reflect the index within a range from 0 to 100. If the index was 70 or more, financial tool will be considered as it has entered within the scope of the large number of buying operations (a situation where prices have risen more than market expectations). It is Taken from the relative strength index of 30 or less as a signal to enter a financial tool within the scope of the large number of sales (a situation where prices have fallen more than the market expectations) ..

Stochastic oscillator:

This indicator is used in determining the conditions of the large number of acquisitions / large sales operations in the scale of 0 to 100%. The index is based on the observation that in the upward trend, closing prices of the studied periods tend to be concentrated in the upper part of the scope period. And in reverse, while prices fall in a strong descending trend, closing prices tend to the proximity of the lower level of the period studied scope.   Random accounts give two lines; % (K) % and (D) are used to identify areas of the large number of acquisitions / frequent sales on the chart. The spacing between the random fluctuation line and the price movement of the underlying financial tool gives a powerful trading signal.

Moving Average Convergence Divergence (MACD):

This index includes a drawing of the two momentum lines of the market. The line of this index is the difference between the average of basic movements and the signal line or launch line, and which an exponential moving average of the difference is. If the index moving average intersects convergence -spacing with lunching line, it takes this as a sign of a possible change of the public trend of the market.

Number theory:

Fibonacci numbers: a series of Fibonacci numbers (1, 1, 2, 3, 5, 8, 13, 21, 34,) composed by adding the first two digits of the number to reach third. The ratio of any number to the next number is larger than 62%, which is a common Fibonacci retracement number. Unlike 62%, which is 38%, are also used as a Fibonacci retracement number.

Gann numbers:

W. D.  Gann was a trader in the stock and commodity works in the fifties and who collected more than 50 million dollars from the markets. He earned his fortune using methods that he developed for trading financial tools based on relationships between price movement and time, known time / price equations. There is no easy explanation for Gann ways, but the bottom line is that he has been used angles in charts to determine support and resistance areas and predict the times of changed future trend. As also he used lines in charts to predict areas of support and resistance. 

Waves:

Elliott Wave Theory. Elliott Wave Theory is an approach to market analysis based on repeated waves models and Fibonacci series of numbers. Elliott wave form shows ideal progress of five waves, followed by a decline of three waves.

Gaps:

Gaps are left areas on the bar graph where it never gets any trading. Upward gap formed when the lowest price on the trading day higher than the highest price of the previous day. And downward gap formed when the highest price for the day is less than the lowest price of the previous day. Usually upward gap is signal on the strength of the market, while the gap downward to indicate the weakness of the market. Breakaway gap is a gap in the price is formed upon completion of an important price pattern. And it is usually begun to refer to the price movement task. Fugitive gap is a gap in the price usually gets near the middle of an important market trend. For this reason, also it called a measurement gap. An exhaustion gap is a gap in the price you get at the end of an important trend and indicate that the trend in the end.

Trend:

Trend refers to the trend of prices. The high peaks and turns indicate into an upward trend, while the low and descending peaks and turns indicate declined trend which determines the extent of the current trend. A breaking line Indicates usually to a reversal in that trend. Horizontal peaks and turns are of the characteristics of trading within a narrow range.

The most common technical tools:

Coppock Curve: it is an investment tool used in technical analysis to predict lower levels in the downward market.

Directional Movement Index (DMI): technical indicator and is commonly used to determine if the currency pair takes a public trend or not.

Unlike fundamental analysis, technical analysis does not care much for any factors "for the larger picture of" affecting the market, but focuses on the activities of the financial instrument market.