So what is technical analysis?
This is the philosophy of Forex trade for one category of traders.
This is a study of the dynamics of markets (any) using graphs.
This is a forecasting method based on facts.
I think these characteristics are enough to understand the main.
Now about key postulates of technical analysis.
Market movement takes into account everything.
Disputes about the correctness of the statement have been going on for years, but so far this expression has not been removed from the key features of technical analysis. It is believed that any factor affecting the price is already taken into account by the movement of the market. Political statement, war, economic indicators, and so on. Everything is already in the current price. It is here that the grain of discord. Some say that during panic in the market and psycho sales/purchases, the rule does not work. Others say that this is temporary and the market returns to the origins of its. In general, the choice for the trader.
Directed price movement.
In a word — the trendy of the market. Therefore, the correct determination of the current market trend will help to take the train and go with all.
“Trend from Yo Frand,” says the golden rule.
And those who cast on anti -chairs — tops, bottom catchers and other romantic traders, have long understood the essence of this expression.
I saw a signal about the change of trend, continuation, end — use, but do not forget that you are on Forex, and not in the office.
I remember that in early market youth I got into the tangle in a poundobax and in 1.5 weeks opened from 5,000 to but then my trading system was too holey to help me get out dry. Well and so on.
I think with this rule it is clear to everyone.
The world is changing, but the story is repeated.
The world is changing, people leave and come, but the history of the Forex market is regularly repeated. The psychology of people does not change, behavior too. This is the essence of the third rule of technical analysis. Understand the price and price history.
Moreover, for many decades, graphic models have already been highlighted and classified. Everything is invented. You can only see and understand. And, of course, learn to put into practice.
If you want to understand the future of the price, look in her past.
Everything is simple.
I think that technical analysis will open for you new boundaries of understanding of the market, psychology of people. After all, working on FOREX, it is worthwhile to understand that this is a virtual environment where money represents people. Therefore, you are not only mistaken. And you are not alone with the right
