Technical Analysis
Technical Analysis is a type of market dynamics research (Forex, stocks, futures and other), most frequently based on charts, which aims to forecast future price movements. Forex Technical Analysis means price dynamics research made by analyzing change regularities of three market factors: price, volume and, in case of forward contracts, open interest (open positions volume).
Technical Analysis Basics
- The price takes into account everything. Any factor, influencing the price (economic, political and psychological), is already adsorbed by the market and priced in. Therefore, all you need to forecast future movements is to study the price chart.
- Price movement follows trends. The major objective of drawing price charts is to find these tendencies at early stages and trade following their direction.
- History repeats. This statement is based on the fact, that fundamentals of human psychology remain the same and therefore, the analysis that showed good results in the past can be applied to present events.
Please Note
Technical analysis does not consider any reasons of price movement change (such as low return on stocks or changes in other prices), it only considers the fact, that the price is already moving in certain direction. From an analyst's point of view, profit can be gained on any market, if you manage to identify the right trend and then close the trading position in time. If the price has fallen to the bottom, you should use the chance and buy, and if it has risen to the top and turned - one should sell without covering. A "trend play" is also possible - it implies cutting and restoring positions along with price fluctuations, confirmed by trading volume.
Right now you can
Download MetaTrader and analyse graphs
See on-line graphs
If you have questions contact us and we will be glad to answer them.
|
|
|
