Talking Points:

• DailyFX tools can assist you in your technical trading

• The Technical Analyzer covers CFD’s and currency pairs

• Follow the preferences of the Analyzer or use them with your own strategy.

DailyFX has a wide variety of charting resources available to assist traders with their technical analysis. The Technical Analyzer is a tool, which displays everything from trading ideas to key pricing levels for your favorite CFD’s and Forex pairs. Today we will review exactly what the Technical Analyzer offers, and how it can apply to any active trading plan.

Analysis for Key Markets

The Technical analyzer is a great tool for getting updates across key markets. As pictured below, you can see this charting tool provides analysis for currency pairs including the majors and cross pairs. As well, the analyzer also looks at commodities and indices. This way regardless if you are trading the US30 (Dow) or the EURUSD, you can find analysis updates at your convenience.

You will also notice that the Technical Analyzer gives a short term and mid-term market outlook. Short term denotes duration of 1-2 weeks, while midterm analysis looks to forecast price out to a month. The analysis itself is fairly straight forward. A green arrow indicates a bullish bias, and a red arrow indicates negative expectations.

The Technical Story

Next, as the Technical Analyzers name implies, it provides a complete technical story for today’s market movements. First off the analyzer provides a key update regarding today’s price. This is included under the summary tab as shown below. Next based off of this information, is a trading preference. Here you can find potential trade ideas and targets based off of the Analyzers summary. This story also includes an alternative scenario to consider as well. In the even the market begins moving in the opposing direction, key pricing levels are given for trading opportunities in the opposing direction.

Lastly, the technical story includes key pricing levels. These values of support and resistance are marked as points of interest for the trading day. These values can be worked into your own trading strategy or simply use them as pricing targets for the Technical Analyzers positions. Regardless of how you trade, you can use this information to create an educated opinion about the market. Now let’s look at the charting data behind the Analyzers trading opinions.

The Charts

One of the great benefits of the Technical Analyzer is that you can see the above analysis for yourself on a provided chart. Below we can see a 30 minute GBPUSD chart updated for the values provided by the Analyzer. First, traders will notice the lines of support and resistance. The central pivot from where the trading bias is created is denoted with a blue horizontal line. Resistance lines are colored in green while key levels of support are labeled in red. These levels once identified, can then be used in completing a trading plan in conjuncture with other indicators.