What is Technical Analysis? In essence, it’s the study of price action to identify trends – spotting repetitive chart patterns that can be traded for profits. Forex chart patterns repeat themselves – as they reflect human psychology, which is constant. Many traders think that simply studying Forex charts can’t work – because it doesn’t take into account the supply and demand situation – but it does actually work. A simple…
When Trading Forex, one of the main cornerstones of your trading system will be a method or technique that helps you select the entry and exit points of all your trades. To achieve this, many newbies resort to listening to hunches or tips from so-called Forex gurus whilst others follow price alerts provided by the financial media or their Forex brokers. However, if you adopt any of these approaches, you…
There are two types of analysis used in Forex trading, fundamental analysis and technical analysis. Fundamental analysis examines current political and economic events in order to predict movements in currencies, while technical analysis uses historical economic data to predict movements in the Forex market. There are three underlying assumptions to technical analysis: 1. Movements in price are the result of a combination of all the forces is in the market….