While there is some division regarding the merits of technical analysis it is likely to be worthwhile to be aware of what other participants are looking at and understand the potential influence that technical analysis may have on their decisions. One of the main benefits for FX traders is that the use of technical analysis can be transferred to any chosen timeframe which can assist in both short and long-term decision making.
- Evaluate the value of technical analysis in foreign exchange trading
- Describe how candlestick charts are constructed
- Outline the concept of Relative Strength Index (RSI), Divergence Trading and Bollinger Bands
- Explain overbought and oversold
- Discuss how bullish and bearish divergence work using RSI
- Indicate where to apply stop-losses with bullish and bearish divergence using RSI, and using the M-Top and W-Bottom setup
- Explain how to judge whether divergence is occurring
- Analyse the significance of standard deviation and mean reversion when using Bollinger Bands
- Differentiate double tops and double bottoms from M-Top and W-Bottom
- Explain how RSI and Bollinger Bands can be used with other technical analysis tools.
Looking for a RG146 CPD solution? This course also forms part of our complete online CPD solution, , which enables financial participants and organisations to meet ASICs RG 146 ongoing training requirements.