LONDON, July 4, 2011 /PRNewswire/ --
Charting is one of the most popular market analysis techniques available to traders. Though by no means perfect, the results can be considered a sensible way to make trading decisions as long as risk management and money management techniques are applied, says Sandy Jadeja, Chief Technical Analyst of financial trading provider City Index (http://www.cityindex.co.uk/).
Mr. Jadeja continues: "As an example, did you know that the Dow Jones has always declined from 28 December to 22 January in the last 12 years? This type of analysis can be useful because it can help a trader prepare for a potential opportunity in advance. We can then look for a trigger to enter the trade.
"In this example, a simple trigger would be a break below a weekly low after 28 December. Of course, trade management is of high importance to prevent large losses."
Chart patterns can be found in almost any market, but Sandy Jadeja particularly recommends charting the forex and commodities markets, as their volatility means large price moves and increased activity are likely.
"I would suggest picking a few markets and practice observing simple patterns," adds spread betting expert Mr. Jadeja. "Then once you gain some experience you will start to see that the markets do trade in very specific patterns. It is at this stage that trading can become very interesting."
Learn more about trading the markets with free spread betting seminars at:
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, contracts for difference (CFDs) and, in the UK, spread betting.
We constantly look to improve the performance of our platforms and expand the range of services we provide. The result is that our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for more information.
Contact: Joshua Raymond, City Index, +44(0)20-7107-7002, joshua.raymond[at]cityindex.co.uk
SOURCE City Index PR