Introduction to Forex Technical Analysis - ForeXposed

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Sunday, September 3, 2017

Introduction to Forex Technical Analysis

  Let's start with the assumption underlying the technical analysis. In this case, I will take an extreme approach so that you can understand how a technical analysis used in obtaining the gain in forex trading. Of course, in practice it is not so. You can combine both analysis (fundamental and technical) in order to obtain a trading system that is best for you.  The chartist (parties who perform technical analysis), believe that they can figure out the patterns of price movements in the future with an observation based on price movements in the past. In short, they hold this jargon: "History always repeats itself".  Of course, this philosophy is at odds with the fundamentalists in which investment decisions over the value of a currency is based on the fundamental factors for economic, political and monetary is concerned.  The main weapon of the technical analyst is a graph (chart – that's why they called the chartist). Through the chart, they can see the ongoing trend, how long the the trend will continue, the volume of transactions, and psychological levels. If you have been able to find out 4 of these, of course, a great advantage will soon flow to your bags. Let me repeat:  1. Trends that are taking place. 2. The volume of transactions. 3. Psychological levels (support and resistance). 4. The period of time that happens.  Introduction to Forex Technical Analysis  Yup, that's it. Indeed the purpose of the chartist is predicting all four of these things. However, now the question is how accurate our ability to predict the price? Well, that's what we must continue to practice every day. There is no perfect method, both fundamental as well as technical. Experience and self holds is the central role here. Technical analysis has some section or the basis of a different analysis. Generally, technical analysis is divided into several major branches, namely:  What is technical analysis have weaknesses? Of course. As I have just said, no one is perfect. Let me summarize the second weakness:  Weaknesses of Fundamental analysis:  1. It takes time to gain information. 2. Is often subjective in nature because it involves a lot of people's opinion. 3. More suitable to be applied to long term period of trading. 4. It is difficult to be applied to the market that’s not efficient.   Weakness of technical analysis:  1. It requires a lot of data to support the accurate prediction. 2. Heavily relies on the ability of the chartist. Each has a different method and each chartist is not necessarily match to applied to each other.  Well, that's it for the introduction on technical analysis. In the next section, we will get acquainted with the graph. Surely you don't want too much information that finally would instead make you giddy, isn't it?
Let's start with the assumption underlying the technical analysis. In this case, I will take an extreme approach so that you can understand how a technical analysis used in obtaining the gain in forex trading. Of course, in practice it is not so. You can combine both analysis (fundamental and technical) in order to obtain a trading system that is best for you.

The chartist (parties who perform technical analysis), believe that they can figure out the patterns of price movements in the future with an observation based on price movements in the past. In short, they hold this jargon: "History always repeats itself".

Of course, this philosophy is at odds with the fundamentalists in which investment decisions over the value of a currency is based on the fundamental factors for economic, political and monetary is concerned.

The main weapon of the technical analyst is a graph (chart – that's why they called the chartist). Through the chart, they can see the ongoing trend, how long the the trend will continue, the volume of transactions, and psychological levels. If you have been able to find out 4 of these, of course, a great advantage will soon flow to your bags. Let me repeat:

1. Trends that are taking place.
2. The
volume of transactions.
3.
Psychological levels
(support and resistance).
4. The period of time that happens.


Yup, that's it. Indeed the purpose of the chartist is predicting all four of these things. However, now the question is how accurate our ability to predict the price? Well, that's what we must continue to practice every day. There is no perfect method, both fundamental as well as technical. Experience and self holds is the central role here.
Technical analysis has some section or the basis of a different analysis. Generally, technical analysis is divided into several major branches, namely: 
Introduction to Forex Technical Analysis


What is technical analysis have weaknesses? Of course. As I have just said, no one is perfect. Let me
summarize the second weakness:

Weaknesses
of Fundamental analysis:

1. It takes time to gain information.
2. Is often subjective in nature because it involves a lot of people's opinion.
3. More suitable to be applied to long term period of trading.
4. It is difficult to be applied to the market that’s not efficient.

Weakness of technical analysis:

1. It requires a lot of data to support the accurate prediction.
2. Heavily relies on the ability of the chartist. Each has a different method and each chartist is not necessarily match to applied to each other.

Well, that's it for the introduction on technical analysis. In the next section, we will get acquainted with the graph. Surely you don't want too much information that finally would instead make you giddy, isn't it?