Technical analysis:

A method used in financial markets to evaluate and predict the future price movements of assets, such as currency pairs, stocks, crypto or commodities. This type of analysis can help you identify better areas and points to enter or exit the market. Testing patterns on historical data can provide an insight on what is going to happen in the present. While it has its critics, there are also several potential benefits to using technical analysis such as:

Price Patterns and Trends Recognition:

This form of analysis can help you identify and analyse price patterns and trends in historical price charts. Being able to recognise patterns such as head and shoulders or double tops/bottoms can provide insights into the way future price will move.

Support and Resistance Levels:

These levels are a basic and essential for of technical analysis as it helps identify areas where price will move between. Being able to identify them can give you an idea of potential reversal and target points.

Technical analysis is often favoured by short-term traders as it focuses on price movements and patterns. Short-term price fluctuations may be more effectively analysed using technical tools.

Statistical Analysis:

An essential and powerful tool which we can use to extract and compare information taken from a set of data. In our circumstance using statistical information helps create strategies and plans based off fact and eliminates discretionary thinking in the markets.

Data Driven Decisions:

Statistics provide empirical evidence to inform your trading decisions.

Pattern Recognition:

Being able to recognise patterns and trends in the market is a big advantage to have, especially when you have the statistical information on them.

Backtesting Strategies:

Having the statistics on selected patterns and trends means you test your own strategies through historical data.

Strategy Optimisation:

The use of statistics can help you refine and optimise your strategy to make it the best it can.