How to make your trading decisions more informed

Functional analysis is an important tool used in trading to identify and analyze market trends and price movements. Here are some key terms of functional analysis in trading:

Technical Analysis

Technical analysis is the study of market trends, chart patterns, and other technical indicators to identify potential trading opportunities. Technical analysts use charts and other tools to identify trends and patterns in the market, and then use this information to make trading decisions.

Price Action

Price action is the movement of prices in the market over time. Traders use price action analysis to identify trends and patterns in the market, and then use this information to make trading decisions.

Support and Resistance

Support and resistance levels are key levels in the market that act as barriers to price movement. Support levels are levels where the price is likely to bounce back up, while resistance levels are levels where the price is likely to bounce back down.

Trend Lines

Trend lines are lines that connect the highs or lows of price movements in the market. Traders use trend lines to identify trends in the market and to make trading decisions based on these trends.

Moving Averages

Moving averages are indicators that smooth out the price movements in the market over a period of time. Traders use moving averages to identify trends and to make trading decisions based on these trends.

Here are some materials to learn more about functional analysis in trading:

Investopedia: Technical Analysis - A comprehensive guide on technical analysis that covers topics such as chart patterns, indicators, and trend analysis.

Babypips: School of Pipsology - A free online course on forex trading that covers topics such as technical analysis, fundamental analysis, and price action.

TradingView - A popular charting platform that provides access to a wide range of technical indicators and charting tools.

StockCharts.com – A charting platform that provides access to a wide range of technical indicators and charting tools.

In conclusion, technical analysis is an important tool for traders to identify and analyze market trends and price movements. Understanding key terms such as technical analysis, fundamental analysis, price action, support and resistance, trend lines, and moving averages can help traders make informed trading decisions. The materials listed above provide a good starting point for learning more about functional analysis in trading.