Technical analysis is a range of techniques used to try and forecast future price movements of financial products based on historical price movements and patterns. Foreign exchange markets are particularly well suited to using technical analysis.
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Technical indicators give traders ways to quantify and measure price action. A technical indicator can show the direction of the current trend, volatility, momentum, and whether a market is overbought or oversold.
The Ichimoku Cloud is a technical indicator that tries to quantify support and resistance, it identifies the direction of the trend, and measures the momentum to create potential trading signals.
RSI divergence signals show traders when price action and the RSI are no longer showing the same momentum. The RSI shows the magnitude of a price move in a specific timeframe. The RSI is one of the most popular oscillators used in technical analysis. A divergence shows the relation between the RSI and current price action is becoming uncorrelated.
In technical analysis a divergence pattern is a signal on a chart that occurs when the price of an asset is moving differently than a technical indicator. A divergence can show that the chart is becoming bullish and the chart may be beginning an upswing or uptrend in price action
Technical analysis is a process used to quantify the price action on the chart of a security and identify trading and investing opportunities based on the patterns created by buyers and sellers. Technical analysts believe past and present trading activity in price changes can be used to create an edge for what will happen next based on what is happening now. Technical analysts try to establish a higher probability of one thing happening over another or to create a good risk/reward ratio through trade entry and management as it plays out.