MTI Analyst Articles

Forex Technical

Trading Ranges and Breakouts

January 28, 2010

 

Jose Tormos - FXMVP

MTI 4.0 Charting on Demand serves as an all-in-one Forex charting platform and analysis tool that gives Forex traders the same accurate and reliable Forex charting tools that the pros use.

Chart Analysis

 

• On this chart here to your right you can plainly see range traders will buy when its price is near the bottom of the trading channel and sell it when the price gets close to the top of the trading channel, making a profit on the price spread. Trading channels may be flat, ascending or descending

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Chart Analysis

 

• On this chart here to your right you can plainly see in practice, a breakout which is most commonly used to refer to a situation where the price breaks above or below a level of resistance and a level of support and heading higher or lower. Once a resistance or support level is broken, it is regarded as the next level of support or resistance when the asset experiences a pullback  Most traders use chart patterns and other technical tools such as trend lines, ABCD’S, and candlestick formations to identify possible candidates that are likely to break through a support/resistance level. 

 

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Analysis

Here at MTI we pride ourselves on our flagship trading software, MTI 4.0. It features easy to use drawing tools, technical indicators and charting capabilities. In this article we explain how forex technical analysis works by providing informative articles on the most popular and widely used forex technical indicators and chart reading basics. Traders are welcome to read on about our examples of how these technical indicators generate trading signals, examples of some trading strategies, and also explain the information that can be observed through spatial intelligence about the conditions of the market at any given moment.

 

All of the analysis is done using the MTI 4.0 charting software, practice these, and other great strategies for FREE, by downloading a 14 day trial of MTI 4.0 charting.