What is technical analysis forex trading
Interested in technical analysis as has already happened in the foreign exchange market, rather than pay attention to what should happen.
The analyst who follows the technical analysis method to study price and volume movements and creates charts data (derived from the actions of market participants) to be used by a key tool to him. Does not care analyst who follows the technical analysis much any factor of "the bigger picture" affecting the market, as it does, an analyst who follows the basic analysis method, but rather focuses on market activity that tool.
Technical analysis is based on three main principles:
The analyst who follows the technical analysis method to study price and volume movements and creates charts data (derived from the actions of market participants) to be used by a key tool to him. Does not care analyst who follows the technical analysis much any factor of "the bigger picture" affecting the market, as it does, an analyst who follows the basic analysis method, but rather focuses on market activity that tool.
Technical analysis is based on three main principles:
.Market behavior reduces the importance of everything
This means that the actual price is a reflection of everything known to the market that could affect it, for example, supply and demand, and political factors and market sentiment. The pure technical analyst is only interested in the movement of the price, not the reasons that led to the changes.
. Prices moving within orientations
Technical analysis is used to identify patterns of market behavior, which is a long time ago of great importance. For many of the known patterns there is a possibility that it will lead to the expected results. There is also a well-known patterns recur constantly.
This means that the actual price is a reflection of everything known to the market that could affect it, for example, supply and demand, and political factors and market sentiment. The pure technical analyst is only interested in the movement of the price, not the reasons that led to the changes.
. Prices moving within orientations
Technical analysis is used to identify patterns of market behavior, which is a long time ago of great importance. For many of the known patterns there is a possibility that it will lead to the expected results. There is also a well-known patterns recur constantly.
History repeats itself
Patterns have been identified and classification charts for more than 100 years and the way repeat many patterns lead to the conclusion that human psychology does not change much over time.
List of categories of technical analysis theory:
Indicators (oscillating power indicators, such as: the Relative Strength Index RSI)
Number theory (Fibonacci numbers, Gann numbers)
Waves (Elliott wave theory)
Gaps (between high and low, and between the opening and closing)
Orientations (follow the moving average)
Charts configurations (triangles, head and shoulders, channels)
Patterns have been identified and classification charts for more than 100 years and the way repeat many patterns lead to the conclusion that human psychology does not change much over time.
List of categories of technical analysis theory:
Indicators (oscillating power indicators, such as: the Relative Strength Index RSI)
Number theory (Fibonacci numbers, Gann numbers)
Waves (Elliott wave theory)
Gaps (between high and low, and between the opening and closing)
Orientations (follow the moving average)
Charts configurations (triangles, head and shoulders, channels)
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