Tuesday, October 6, 2009

technical analysis in forex


What is Technical Analysis? Technical analysis attempts to forecast future price movements by examining past market data. Most traders use technical analysis to get a "big picture" on an investment's price history. Even fundamental traders will glance at a chart to see if they're buying at a fair price, selling at a cyclical top or entering a choppy, sideways market. Technical analysts make a few key assumptions:
All market fundamentals are reflected in price data. Moods, differing opinions, and other market fundamentals need not be studied.
History repeats itself in regular, fairly predictable patterns. These patterns, generated by price movements, are called signals. A technical analyst's goal is to uncover a current market's signals by examining past market signals.
Prices move in trends. Technical analysts believe price fluctuations are not random and unpredictable. Once an up, down or sideways trend has been established, it usually will continue for a period. Get in and get out - at the right time Traders rely on price charts, volume charts and other mathematical representations of market data (called studies) to find the ideal entry and exit points for a trade. Some studies help identify a trend, while others help determine the strength and sustainability of that trend over time. Technical analysis can add discipline and minimize emotion in your trading plan. It can be hard to screen out fundamental impressions and stick with your entry and exit points as planned. While no system is perfect, technical analysis helps you see your trading plan through more objectively and dispassionately. Price chart types Bar chartsThe most common type of chart showing price action. Each bar represents a period of time - a "period" as short as 1 minute or as long as several years. Over time, bar charts show distinct price patterns. Candlestick chartsInstead of a simple bar, each candlestick shows the high, low, opening and closing price for that period of time it represents. Candlestick patterns provide greater visual detail as they develop. Point & figure chartsPoint & figure patterns resemble bar chart patterns, except Xs and Os are used to mark changes in price direction. Point & figure charts make no use of time scale to associate a certain day with a certain price action. Technical indicator types TrendTrend indicators smooth price data out, so that a persistent up, down or sideways trend can be easily seen. (Examples: moving averages, trend lines) StrengthStrength indicators describe the intensity of market opinion on a certain price by examining the market positions taken by various market participants. Volume or open interest are the basic ingredients of strength indicators. Volatility"Volatility" refers to the magnitude of day-to-day price fluctuations, whatever their directional trend. Changes in volatility tend to anticipate changes in prices. (Example: Bollinger Bands) CycleCycle indicators indicate repeating market patterns from recurrent events such as seasons or elections. Cycle indicators determine the timing of a particular market pattern. (Example: Elliott Wave) Support/resistanceSupport and resistance describes the price levels where markets repeatedly rise or fall and then reverse. This phenomenon is attributed to basic supply and demand. (Example: Trend Lines) MomentumMomentum indicators determine the strength or weakness of a trend as it progresses over time. Momentum is highest when a trend starts and lowest when the trend changes. When price and momentum diverge, it suggests weakness. If price extremes occur with weak momentum, it signals an end of movement in that direction. If momentum is trending strongly and prices are flat, it signals a potential change in price direction. (Example: Stochastic, MACD, RSI)

1 comment:

  1. Libertyreserveinvesting.com-9000% of your spend after 24 hours
    Security-Investment is a High Yield Investment Program run by a group of investment professionals, We are backed up by Forex market trading, Financial market betting, Sports arbitrage wagers and various other investments in online and offline funds. We are well diversified to provide our members with very safe return of 1000%-9000% after 24 hours You can think of this as a longterm secure investment pool.
    Our program is a fully automated; meaning referral payouts, deposits, withdraws made automatic. Interest payouts are scheduled to be done one time during day, and will be made directly to your Liberty Reserve account.. Payments will be made 7 days per week.
    Invested amount 24 hours profit
    $300 - $1000 1000% of your spend after 24 hours
    $1100 - $5000 2000% of your spend after 24 hours
    $5100 - $10000 4000% of your spend after 24 hours
    $10100 - $30000 6000% of your spend after 24 hours
    $30100 or more 9000% of your spend after 24 hours

    I deposited $6,000 and Received $240,000 Liberty Reserve money in 24 hours
    Date: 2009-11-30 16:21
    Batch: 237876XX
    From Account: U6526268 (libertyreserveinvesting.com)
    Amount: $240,000.00
    Memo: LibertyreserveInvesting

    My Referral link
    http://www.libertyreserveinvesting.com/?U6977645
    http://www.libertyreserveinvesting.com/?U6977645

    You can check the site paying or not
    http://www.yahoomsngroup.com
    http://www.payinghyiponline.com
    http://www.makecurrencyonline.com
    http://www.hyipfunding.com
    http://www.libertyreserveforex.net

    If you deposit with following link, Just Mail to:hdonvo@gmail.com with your deposit record.I will return 80% of your deposit. Never Missing payment.

    ReplyDelete

 

forex, trading, market, foreign, exchange, market, currency, trading, forex broker, online trading, forex analysis, forex ranges, forex news, forex qoutes

Web Analytics