Technical analysis of the currency market in real time - this is one of the most effective ways to market research.It is a prediction of the price movement of the asset based on an analysis of past movements.Technology allows you to track fluctuations in the past and taking into account the data to determine where to go schedule - north or south.The peculiarity of this technique is that the price is investigated solely based on its movement.A comprehensive technical analysis of the currency market does not include an assessment of the fundamental factors that could cause the price movements in a certain direction.
Basics of technical analysis
as the basis of technical analysis serves tandem interrelated activities which allow to precisely determine the subsequent movement of the trend.Using a tool within the art, in particular one of the indicator or only support and resistance, is not effective.A comparison of data across multiple tools allows you to make the most accurate forecast.Evaluation of the situation on the market is based on several parameters such as a change value, the volume of transactions, the number of open positions.The dominant parameter estimation of market movement is always the price, the remaining quantity is only considered complete the picture confirms the forecast.
basic principles of analysis
Technical analysis of the currency market in real time based on three main principles, which should be aware not only professional, but also a novice trader:
- Currency market in its movement considers everything.On the chart reflects the political and economic factors.For example, the removal of the EU sanctions with Iran for the supply of oil to the international market or the payment of the debt of Greece EU can be attributed to a potent stimulator of currency movements.
- Trends systematically repeated.At times the price will draw identical figures, which are called patterns.This is due to the fact that despite the change of the situation world psychological factor never changes, and in most cases, merchants use the patterns of behavior in the market.To say more, traders used to respond to certain news the same way.Knowing the reaction of market participants can promptly open and close positions.
- At the heart of any movement is the trend.Technical analysis of the currency market in real time is simply impossible without determining the main trends in the market.If within it was chaos, about any prediction, and even more so about earnings due to speculation on prices, there could be no question.
Concepts technique
Technical analysis of the currency market in real time is based on the basic concepts.Begin analysis of the situation impossible if you do not understand the trend.There are three formats of market movements:
- bullish trend (or uptrend) - the price goes up.
- Downward trend (or bearish) - the price is oriented downward.
- sideways trend (or flat) - a period of stagnation in the market, a moment of uncertainty.The price moves within a narrow price range and market participants only thought about which way to open a position.
draw attention to the fact that each of the trends in its purest form - a rarity in the market.Any movement of quotations accompanied by setbacks.Beginners are recommended to trade only with a pronounced trend.Fletovyh market conditions beware even professionals as probable profits do not justify the high risks.
technical analysis tools
as technical analysis tools can act:
- bar graphs;
- indicators;
- oscillators;
- channels;
- wave;
- graphic shapes.
Each of the tools has certain advantages.A detailed understanding of each functional enable to analyze the situation and make the right decision.You should not be guided by only one tool, because its signal for the transaction may be false.Another thing, when multiple instruments show identical signals, which opens up broad prospects for earnings.Earlier technical analysis tools were not automated, as it is today.In order to analyze the situation, you had to hand draw graphics, and perform calculations.So the study of each instrument is not so difficult, but very necessary.
figures technical analysis - the most reliable patterns
As part of the technical analysis has established patterns that are defined patterns of behavior as a major market participants, as well as small ones.They are personified in the form of certain graphic shapes.As an example, a flag and a double top, triple bottom and head - shoulders.Once a figure emerges on the graph, and the price goes over a certain line, it is possible to speak confidently about the future direction of the movement.
What do the figures and what are they for?
Note that there are continuation patterns and reversal.The frequency of occurrence of such patterns on the chart is different depending on the time period and from the traded instrument (currency pair).The percentage of working out such patterns may be between 80% and higher.It is not enough to understand the theory.Technical analysis of the currency market online through graphic figures should be accompanied by practice.Only trading for a long time, you can learn to see the patterns and use them to their advantage.In practice, any shape will not have such a clear and concise view of how the pictures.
advantages of technology
Technical analysis of the currency market Forex - is the cornerstone from which to start dating each newcomer to the currency market.Experienced players use the technique as a tool for analyzing the behavior of newcomers.For inexperienced traders often make decisions, starting only from the emerging lines of support and resistance.Knowing this, the big players can predict the direction of movement of scale solution that allows to hold the most favorable position.Not for nothing there are statistics, according to which earn the foreign exchange market only a few percent of the participants.There is even a theory that acting in defiance signals technology, you can receive substantial income, but many will take this issue to challenge.
understanding of technical analysis - a step on the path to successful trading
Basics of technical analysis of the currency market, though are fundamental, but can not serve as the only tool to build your trading strategy.Efficient trade is only when, in addition to the technique of using fundamental analysis and a computer.It is not necessary to use all of the tools simultaneously art, since it only schedule overload and cause confusion in the signals.Experts recommend that novices study in detail on one instrument in each of the analyzes of the market, depending on the most appropriate format trade.Such an approach would avoid the losses and damages, will bring good trading results.
