Can technical analysis that is used in Forex also be applied to Stock charts? I know there are more variables to consider when trading stocks but I was just curious. I’m thinking it’s similar for the most part. Anyone here trade stocks using same Forex technical analysis ?
Of course you can, you just need to change your strategies. Technical analysis is technical analysis.
Change strategy? Well I meant if you have a strategy that works for you in Forex, can you use that same strategy on stock charts ?
Why don’t you do a backtest with your strategy on both forex and stocks and see how they compare?
You’ve got to put in the effort, nobody’s going to hand you answers like that on a silver platter.
Agree with Rambo35. Charts is charts and behavioral pattern is behavioral pattern. Just make allowances for the fundamental differences of stocks and forex trading (ex. volatility and volume probably won’t be as high).
No, you can not use the exact same strategy. The terminology and mechanics of technical analyses remain the same but strategy needs adjustments.
In my experience i would say that stocks are more fundamentally based, and then backed by technicals, while forex is mainly technical heavy and backed by fundamentals.I’ve also noticed that technicals work better on stock when intra day trading, and when trading on extended periods, like a week to a month or even longer.I also know the 200 day ma is really accurate for stocks.
If the charts represents stocks, yes you can apply same methods of forex technical analysis. You have to also consider so many factors in this case.
I see, so if I’m getting this right, strategy needs adjustment because there are many fundamentals to consider in stocks compared to forex.
Thanks for the helpful replies so far everyone. Can anyone recommend any free stock trading platforms that allow you to trade NYSE on a demo account, like a Metatrader for stocks ? I know there are plenty for forex
Your forex strategy will work only in forex.