Technical analysis is relevant to stocks, indices, Commodities, Futures or any other instrument that can be traded, and the price is determined by supply and demand. Prices are studied in candles that give us a combination of the data on the opening, high, low and closing on a particular financial instrument in a specific period of time. The timing may be intraday (1 minute, 5 minutes, 10 minutes, 15 minutes, 30 minutes or every hour) or daily, weekly or monthly.
The interesting thing about technical analysis lies in its versatility; since the principles of technical analysis are universally applicable, each step of the analysis mentioned above can be developed using the same theoretical background. You don’t need an economics degree to analyze the chart of an index. You don’t need to be a professional trader or economist to analyze a chart of prices. The charts are just that, charts! No matter if the timing is in days or years. It doesn’t matter if it’s a stock market, index or commodity. The technical principles of support, resistance, trend, lateralization and other aspects can be applied to any chart.
Technical traders are usually best suited to operate in the Forex and CFDs given their determination to find short-term investment opportunities with great earning potential.