Forex Technical Analysis

Technical analysis is the approach adopted by most Forex traders-type analysis. In the currency market, it works just as well as in the stock or bond market. The essential premise of the TA is that all relevant information already in the course of a market are included. Technically oriented traders interested in why not for central bank meetings or economic growth, but only for the price movement itself .

One of the main elements of the TA are trends. Among technicians liked the saying "The trend is your friend" is used. The background is the assumption that an existing trend, even with a greater likelihood of continuing, as he does not. Upward trends can be directed sideways or downwards. At each trend can equally make money. An uptrend is defined by a series of rising lows and highs in a downtrend, it behaves exactly the opposite. Technical analysis consists of two elements: the chart and the technology market. The bases of both disciplines are trends.

In technical analysis is about identifying and assessing trends in terms of their stage and their quality. Trends should also be recognized, which may be around a trend break or change their direction or intensity. In addition, know the charting a series of price patterns, where special importance is attributed. Sun indicate reversal patterns indicate a trend reversal, continuation patterns - also known as a trend-confirmation formations indicate a continuation of the prevailing trends.

In the technical analysis are drawing tools and technical indicators are used. To the drawing tools include some trend lines and trend channels or Fibonacci retracements. Indicators are quantitative measurements derived from the price of a market. Among the most important indicators include moving averages, momentum or the ADX. Technical analysis is in its fundamentals easy to learn. In particular, the chart analysis, however, requires some practice, so that predictions are possible with a high hit rate. The trading platforms Forex brokers usually offer all that is needed for technical analysis in-house, drawing tools that can be applied directly in the open live chart are available as well as indicators. For beginners there are also training courses available to teach the basics of technical analysis.