Basic Of The Technical Analysis.
|
The rate takes everything into consideration – the essence of this assertion consists that any factor influencing the price – economic, political or psychological – is already considered by the market and is included in the price. Therefore studying of the schedule of the price is everything that is required for forecasting. Despite of some simplification of a real situation as shift in time is not considered from the moment of reception of the information before its influence on the price, on spaces of time from several hours and more this position is difficult for challenging.
The price moves in one direction – this assumption is a basis for trend analysis and serves as a basis of all technical analysis. There are allocated three types of trends:
- “The bull” trend – the prices move upwards. Definition “bull” has arisen by analogy to a bull raising upwards on the horns the price;
- “The bear” trend – the prices move downwards. In this case the bear as though crushes under itself the price, leaning on it top-down with all body;
- Million Dollar Pips
The First Real Million Dollar Forex Robot. Uses A Unique Scalping Strategy To Bring In Quick Pips With Literally Less Than 5 Pip Stop Loss!. - Forex Megadroid™
Indisputably Proves A Robot Can Trade With 95.82% Accuracy In EVERY SINGLE Market Condition And Quadruple Every Single Dollar YOU Deposit. - The PennyStock Egghead
Retire a Multi-Millionaire Starting with $1,000, One Trade Per Week Really Can Turn Chum Change Into A Massive $5.7 Million Cash Avalanche. - Finally Revealed: The $119k Facebook conspiracy!
Hey guys I wanted to let you know about a new system that I found out about today... it actually shows you how to make money using facebook!. - Auto Mass Traffic Software
Try Auto Mass Traffic Risk Free For The Next 60 Days And If you Do not Get The Traffic I am Promising I Will Give You A Full No Question Asked IMMEDIATE Refund.
- Lateral – there is no certain direction of movement of the price either upwards, or downwards.
Usually such movement is named “flat”, more rare – “whipsaw”. At once it is possible to notice that long flat is a harbinger of a price storm in the market – strong movement of the price in one or other side.
As a rule, the prices don’t move linearly upwards or downwards. However on the bull trend the price grow more and more fast, than fall. The same but vice versa occurs at the bear trend.
Thus, if trends exist, to them it is possible to apply movement basic laws, as that:
- “The active trend with higher probability will continue, than will change a direction”, or
- “The trend will move in the same direction until will not loose its forces”.
History repeats itself – the essence of this assertion consists in an invariance of action of physics, economy, and psychology laws during the various periods of history. Hence, those rules that operated in the past – operate and now, and also will operate in the future. This assertion also gives to us right to use the technical analysis of the reality and with any more or less exact estimation to predict the future. Some wrongly understand that the behavior of the market repeats, the schedule of the prices. However it is not correct.
Here on these three axioms (the assertions, which are not requiring proofs) bases technical analysis.
Moreover, it is a way of life, instead of plans for the weekend. The understanding of schedules and their use allows objectively estimating of activity; it is better, than subjectively to react to raisings and recessions in daily trade. The paramount problem in trade is to make money. It is not important, whether there will be 1$ per month, the main thing that you were not at a loss. You can grow together with a progressing curve. The trader, knowing how to reduce losses and adhering to one method, solves the most complicated problem – to become succeeding: developing and following the plan of action.
Before you make up your mind to make a forex investment or start forex trading yourself, better find a good forex book and read more about the currency exchange market – this will save you from tons of troubles and traps.
Basic Of The Technical Analysis.
25% OFF Hostgator.com Coupon Code :
"fabieGator25OFF"




November 12th, 2011 at 10:10 am
artificial christmas tree…
This is really fascinating, You are a very professional blogger. I have joined your rss feed and sit up for searching for more of your fantastic post….
February 2nd, 2012 at 8:25 am
… [Trackback]…
[...] Read More here: fabiezone.com/basic-of-the-technical-analysis [...]…