Price Forecasting said the trader, what to do (buy or sell), the tactic helps determine when to do it, and money management rules suggest how much money to invest in the deal.
Technical Analysis
Technical analysis takes the form of graphs that depict the movement of prices. This is a relatively simple form of analysis, in contrast to, for example, from a fundamental analysis. They enjoy the beginner and intermediate investors.
Consider the principles of technical analysis of Forex. Forex Technical Analysis allows you to predict movements of exchange rates on the basis of research data on past rates and volumes of trading. This type of analysis relies on the schedules and formulas to track trends in the movement of courses, recognition of good opportunities to sell or buy a currency when the market moves. It is based on analysis of time series of prices and their schedules - "the charts" (from the English. Chart).
Technical analysis is based on the belief that the market has taken into account all: the events, and expectations of market participants. Price movement - a summing vector of all factors, even those who have not yet named and not understood, but which are already influencing the dynamics of prices.
Depending on your time range, you can use daily technical analysis (with an interval of 5 minutes, 15 minutes or 1 hour) or on a weekly or monthly basis.
In order to properly analyze currency pairs in Forex,it is first necessary to understand the essence of technical analysis.
For example, the trader is buying Euros, must monitor the fluctuation of quotation EUR / USD. The-minute currency rates also suggest a rapid response trader.
Forecast of the market, built with the help of technical analysis is the first part of the strategy of behavior of market participants Forex. Based on the forecast made a decision about the opening position and how much money to invest in it.
Methodology for the Forex market is the following: investigate the nature and pattern of price movements.
Technical analysis is divided into two methods:
graphic;
Mathematics.
In technical analysis, there are many different tools and techniques. They are all based on one general assumption - by analyzing the time series of prices and trading volume can be identified recurring patterns and trends, to determine the overall condition of the market.
Technical analysis does not consider the reasons why the price changes its direction, and takes into account only what the price is already moving in a certain direction. Income may be received in any market, if it is true to recognize the trend, and then time to close a trading position. "
Modern technical analysis at its core contains the basic provisions or the axiom of Dow Jones:
index (the rate or price) includes all and any factor influencing the price (economic, political or psychological) is already considered by the market and included in the price, so all that is required to predict - to study the price chart;
price movement is subject to trends (direction of price movement - a trend), so the purpose of charting price movements is to identify these trends early in their development in order to trade in accordance with their direction.
Most technical analysis reduces to that of Graphics (charts) prior movement of currency prices to predict their possible further movement.
Technical analysis - one of the most powerful tools for predicting the state of the market Forex.
The main strength of technical analysis lies in its flexibility with respect to the original instruments, markets and time periods. Forex trader who is interested in multiple currencies, but specializing in any one can easily use the same technical skills to trade any other currency.
With the development of information technology, a host of applications for these purposes. Analyze the market was fairly easy - just load the data into the program and before you have enough clear picture of the situation on the market.
Before you enter into the market, technical analysis will provide you with a variety of trading signals.