In general, all this diversity of approaches is part of one of the following two principles: fundamental analysis which studies economic data or news, and technical analysis which is oriented towards the investigation of charts and price patterns. Some traders combine the two, some prefer to rely on fundamental analysis, but to be honest, technical analysis is more popular among Morocco traders. Additionally, you can also go to http://www.arabforex.pro/en/morocco/ if you need brokers that serve traders in Morocco.
Technical analysis studies the price patterns of an asset. Of the many ways to identify patterns, below are some of the ones that attract the most attention of traders.
1. Candlestick patterns
Candlestick charts are a pillar of technical analysis. Candlestick patterns display the opening and closing levels, the highs (highs) and lows (lows) for a certain period. Thus, candlesticks are the most effective way to describe price movements in the Morocco forex market.
2. Chart patterns
When observing the chart, we can understand whether the direction of the movement of a particular trend will continue as it is or reverse. This is what is called a chart pattern – a combination of support and resistance lines – which can help a trader from Morocco predict the direction of the next move. These patterns fall into two groups:
– Flags, etc.
Reversal pattern (reverse):
– Head and Shoulder
– Double Top
– Double Bottom, etc.
3. Technical analysis have some indicators that you must be familiar with
To understand the development of the situation on the market, traders from Morocco should monitor indicators of price movements. This indicator is a mathematical calculation programmed based on statistical data and can be used to determine financial trends. Some of these can indicate an overbought or oversold period in the market, while some can indicate up or down momentum.
These indicators can be separated into groups of three:
– ADX which is known by many traders from Morocco as the Average Directional Index
– Moving Average as known as MA
– Ichimoku Kinko Hyo, etc.
– Williams Percent Range as known as % R
– Relative Strength Index as known as RSI
– Stochastic Oscillator, etc.
– Money Flow Index
– Force Index
– Accumulation / Distribution Line, etc.
– Average True Range (ATR)
– Standard Deviation
– Bollinger Band (BB), etc.