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- Technical analysis on the Garant Trade Platform: what it is and how to use It in practice
Technical analysis on the Garant Trade Platform: what it is and how to use It in practice
Many traders on the Garant Trade platform actively use indicators, search for working strategies, and test chart patterns. However, not every beginner fully understands what technical analysis is and why it’s not just a trendy term — but a key element of consistent and informed trading.
In this article, we’ll explain what technical analysis really means, how it works, and which basic tools you should start with.
What Is Technical Analysis?
Technical analysis is a method of predicting price movements based on its historical behavior. The goal isn’t to foresee the future with 100% accuracy, but to identify the most probable scenarios based on recurring market patterns.
It can be applied to any asset type — currency pairs, stocks, cryptocurrencies, commodities, indices. So if you trade options on Garant Trade, the principles of technical analysis are relevant regardless of the instrument you choose.
When Technical Analysis Works — and When It Doesn’t
For technical analysis to be effective, certain conditions must be met:
- High liquidity. The asset should be actively traded. Low-liquidity instruments are harder to predict and more prone to manipulation.
- No artificial price distortions. Events like stock splits or regulatory interventions can disrupt the natural price behavior. Technical analysis does not account for these events.
- No unexpected major news. Terrorist attacks, political resignations, or market crashes can drive prices purely on emotion — outside the scope of technical patterns.
Core Principles of Technical Analysis
The price reflects everything
Technical analysts believe that all available information — including reports, forecasts, and news — is already priced in. That’s why they focus on what the price is doing, not why.
The market is not random
Even during periods of high volatility, the market follows certain structures — trends, levels, impulses. Recognizing them is the foundation of technical trading.
“What” matters more than “Why”
In technical analysis, the reason behind price movement is secondary. If the price is rising — that’s enough. The focus is on action, not explanation.
How to Apply Technical Analysis on Garant Trade
The process of applying technical analysis can be broken down into a few clear steps:
Identify the trend
Use trend indicators like EMA or Alligator to determine the general direction: uptrend, downtrend, or range.
Mark key levels
Support and resistance lines show where price tends to reverse or break out. Use horizontal lines to highlight those zones on the chart.
Evaluate momentum (impulse)
Indicators like MACD or RSI can help you understand how strong the current movement is. This is useful for timing your entries or exits.
Choose an entry point
Combine multiple signals — trend, level, and momentum. When all three align, it can be a strong signal to enter a trade.
Track your performance
Keep a trading journal. Log which signals worked, and which didn’t. This not only improves your skills but helps refine your personal strategy.
Recommended Tools for Beginners
Garant Trade offers a wide selection of built-in indicators. But for a solid foundation, start with just three:
- EMA (Exponential Moving Average) – smooths price action and shows the primary trend direction.
- RSI (Relative Strength Index) – helps identify overbought/oversold zones and potential reversals.
- Horizontal levels – manually drawn support and resistance lines that simplify visual analysis.
Less is more: stick to 2–3 tools max. Overloading the chart can lead to confusion and hesitation.
Conclusion: Why Technical Analysis Is Essential for Beginners
Technical analysis is not about “graph magic” — it’s a methodical system that allows traders to act with logic rather than emotion. It doesn’t eliminate losses completely, but it significantly reduces the chances of random decisions.
On the Garant Trade platform, you can apply technical analysis in both demo and live trading environments. The user-friendly interface and customizable chart tools give you full control — from timeframe to indicator setup.
Tip:
Start with one strategy and one instrument. Backtest it and try it in demo mode. Only then move to real trading. This protects your capital and builds skills you can apply to any market.
With consistent practice, technical analysis becomes not just a tool — but a trader’s main advantage in any condition.