“How do I know when to Buy or Sell?” Most beginner traders struggle with this, don’t worry because we’re going to break it down so clearly that even a 5 year old could follow. Two main types of analysis you need to understand:
1. Technical Analysis (TA) This is the most popular method among traders, and you’ll love it. Technical analysis strategy is the art of reading charts, and make decisions about your direction without complications. You look at Price Movements, Patterns, and Indicators to decide what might happen next. Think of it like this, The chart tells a story. Your job is to read it.
Tools You’ll Use (All inside MetaTrader 5):
• Support & Resistance (zones where price bounces or breaks)
• Trend lines (to spot if market is going up, down, or sideways)
• Indicators like RSI (shows if market is overbought or oversold), and Moving Averages (shows market direction), while MACD (shows momentum shifts)
Why Use It?
Because price repeats itself. The market moves in Patterns. Once you learn to spot them, you’ll feel like you can “predict the future.”
2. Fundamental Analysis (FA)
This looks at real-world news and events that move the markets. Think of fundamental analysis as an actual Economy. You look at how the economy in such country youd like to trade is doing, or how companies are doing. For example, if i trade Nasdaq, first i know Nasdaq holds 100 Tech Companies in the US, such Apple, Microsoft, Google etc. I then read news based on those companies, how they are doing before making any decisions. And obviously after reading if the news are positive for few major companies, there's possibility of Nasdaq buying, and negative news means companies aren’t doing well, so we sell. If you wanna know more about, or how to trade Nasdaq 100, Click Here.
What to Watch For:
• Interest rate decisions
• Speeches from central banks
• Breaking news (war, disasters, elections, etc.)
You can find this info on websites like investing.com Why Use It?
Because sometimes, the news controls everything.
A single headline like unemployment reports (NFP) can move the market 100+ Pips in seconds. If you’re not aware, it can wipe your account.
Combining Technical + Fundamental
Smart traders use both:
They use technical analysis to find their setup, and use fundamental analysis to avoid trading during dangerous news
Timeframes.
Which Chart Should You Use? MetaTrader 5 has many chart timeframes:
1. M1 (1-Minute) – Very fast, not for beginners.
2. M5 & M15 (5 or 15-Minutes) – Good for short-term trades.
3. H1 & H4 (1 or 4-Hours) – Great for swing traders.
4. D1 (Daily) – Best for bigger picture
Beginner.
Tip:
Use H1 or H4 for clean setups. Less noise, more accuracy.
Example of a Simple Technical Analysis Setup
1. Go to H1 chart of EUR/USD.
2. Draw trendline connecting higher lows.
3. Wait for price to bounce at the trendline.
4. Add RSI – is it below 30? That’s oversold = Buy zone.
5. Enter a trade, Set stop loss below trendline. 6. Take profit 2x or 3x your risk.
Boom — that’s a smart, analyzed trade.
Avoid These Common Mistakes
1. Don’t enter blindly without checking the chart.
2. Don’t trade during big news (unless you're skilled)
3. Don’t rely on Indicators alone, understand price movement.
4. Don’t overcomplicate. Simple setups win
Final Thoughts
Analyzing the market is not guessing.
It’s a skill that grows over time.
And MetaTrader 5 gives you all the tools you need to do it. Practice on your FXGT demo account first, analyze, plan, and then enter.