LONDON, February 8, 2011 /PRNewswire/ -- Do you use technical analysis as part of your financial spread betting (http://www.cityindex.co.uk/spread-betting/)? If not, you may be missing crucial market data revealed by chart patterns and trend data. This is because technical analysts take a very quantitative approach to spread betting, using past facts and figures to determine future price levels along with potential support and resistance levels.
As Sandy Jadeja, Chief Technical Analyst of spread betting provider City Index (http://www,cityindex.co.uk/), states: "[Technical analysts are] not interested in the value of a stock, but in the direction in which the stock is going to move and how far it can move without being stopped out for a potential loss. There is an old saying that 'fundamentals tell you what, and technicals tell you when'."
Charting software is now readily available both online and on mobile trading platforms, such as those offered by City Index. This technology can make market analysis a matter of minutes, rather than hours - a potentially vital advantage in the fast-moving markets of today.
When it comes to getting started with charting and technical analysis as a whole, Mr. Jadeja is a huge advocate of not running before you can walk. "Instead of getting overwhelmed by trying to learn too much in one go, it would be better to take the process one step at a time. The good news is that you can make this as simple or as complicated as you want."
Many spread bettors use a combination of fundamental and technical analysis to read price movements in a quick and efficient way. If you are purely a fundamental analyst at the moment, this could be the perfect time to weave technical analysis into your spread betting strategy.
Fundamental analysis assesses the economy and individual company data to determine the value of a stock, whereas technical analysis works solely on price movements and volumes of trades. Ultimately, each technique has its strengths and weaknesses, so possessing the versatility to use both will put you in a better position to understand the markets. For more on market analysis in spread betting, visit
To learn more about technical analysis in spread betting, attend a free seminar at City Index. See all upcoming workshops and topics at:
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 for individuals in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, contracts for differences (CFDs) and, in the UK, spread betting.
We constantly look to widen the range of assets we offer, 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 service and support. To find out more, visit http://www.cityindex.co.uk/ .
Spread betting and CFD trading are leveraged products which can result in losses greater than your initial deposit. Ensure you fully understand the risks.
SOURCE City Index