Today, anyone can trade different assets on the Forex market. Currency pairs are a great option, especially for those who are just starting their trading journey. However, it is not always wise to act alone; it is better to enlist the support of a trusted satellite or a brokerage company at the start. An intermediary between the market and the trader will help you adapt to market conditions, choose the right working strategy, tools, and assets. With DotBig Forex experts, you can achieve high financial results in trading currency pairs faster.
Why Does Technical Analysis Matter?
Novice traders can significantly increase their chances of success by using the right combination of trading and analysis tools.
The most important success factor for a trader, especially one who deals frequently, is the ability to identify patterns in the market data space. Due to the rapid development of software and the emergence of reliable brokers such as the DotBig exchange, technical analysis tools have become available to traders of any level over the past 15 years.
Technical Analysis of Currency Pairs Specifics
There are two ways to make money on the stock market: through dividends and fluctuations in the value of shares. In the first case, everything is simple — the company periodically pays part of the profits to the holders of its securities. The second case is more complicated: you need to buy when it’s cheap and sell when it’s expensive. The most difficult thing in this scheme is to decide exactly when to make a deal. The profit depends on how accurately the investor predicts the price dynamics.
The technical analysis methodology for currency pairs is based on price change charts. Most often, they are formed from “Japanese candlesticks”.
The chart is drawn up as follows: the “body” of the candle lies between the opening and closing prices of the period. “Tails” mean the maximum and minimum price during the period. Green indicates a rising price, red indicates a falling price. Black-and-white charts use shaded and white candlesticks. The chart is discrete, meaning the candle reflects the user-selected period, be it a minute, an hour, a day, or a month.
Price changes fit into three trends:
- Ascending or bullish — the price is rising. It is important for a trader to predict the beginning and buy stocks at the very first stage of growth.
- Downward or “bearish” — the price is falling. When the peak is reached and the quotes are moving down, you either need to sell the available shares or play it down.
- Sideways — the price fluctuates slightly around a certain figure. It is impossible to make a noticeable profit; it remains only to wait until the price moves somewhere.
The main mistake of a novice investor is to sell at the bottom and buy at the peak of the price. It seems that since the exchange rate has been steadily rising for a long time, this is a buy signal. It may be the other way around. Technical analysis figures help predict the likely moment when the trend will reverse.
Technical Analysis Tools by DotBig
The DotBig broker platform provides technical analysis tools — charts and indicators that help traders analyze market trends and identify entry and exit points. These functions are available in the web terminal and on the mobile platform.
- Charts
Linear, candlestick, bar, and other types of charts are available on the platform. This allows traders to choose the most appropriate data display format for their strategies.
Chart setup features:
- One can change the time intervals.
- One can add or remove indicators.
- One can customize the colors and styles of data display.
This allows traders to choose the most appropriate data display format for their strategies.
- Indicators
More than 50 indicators for technical analysis are available in the DotBig exchange web terminal. Some of them are:
- moving averages;
- RSI;
- MACD;
- “Bollinger bands” and others.
These tools help traders analyze market trends, identify entry and exit points, and make more informed decisions.
One of the key advantages of the DotBig trading website is the ability to customize charts to meet individual traders’ needs. Users can change time intervals, add or remove indicators, and customize the colors and styles of data display.
Besides, DotBig investments provides users with tools for fundamental analytics:
- Trading Signals
The broker’s clients can automate the trading process using online DotBig signals. This way, traders can track price changes in Forex, stocks, cryptocurrencies, and more. Trading signals are a free option for DotBig traders.
They notify users about important points that may affect the outcome of transactions.
- Social trading
Another effective tool that the DotBig platform offers to its customers is social trading. This is a great way to make money by copying the successful trades of other exchange clients.
With the help of social trading, beginners can make profits by copying the trades of successful and experienced Forex market participants.
- Economic calendar
Everyone knows that to make money in Forex, you need to be able to analyze current economic events and news from international financial markets. However, it is impossible to independently monitor all important events. To do this more effectively when trading with a DotBig broker, use the Forex economic calendar on the platform’s website.
Advantages of Trading Currency Pairs with DotBig
Choosing the right broker depends on how quickly a trader can adapt to market realities, and accordingly, how soon he will start making money on Forex transactions. By choosing the DotBig Forex broker, you get the following advantages:
- A wide range of trading tools
- Access to numerous assets, including currency pairs
- Professional support from trade and investment experts
- A convenient web platform and an affordable mobile application
- Technical and fundamental analysis tools
- Low fees
- Round-the-clock help line
- A wide range of training materials for novice traders
Many traders note in the DotBig reviews that the website provides a user-friendly and intuitive interface for market analysis. This makes it easy to find the necessary tools and quickly switch between different charts and indicators.
The use of analytical tools on the DotBig site can raise questions, especially for novice traders. Round-the-clock support is available on the site to help you understand any aspects of using charts and indicators. Users can receive consultations by phone, email, or via online chat.